Government Accounting Equation Fund Balance/Net Assets 12/1/2018 Government Accounting Equation Assets (Debit) - Liabilities (Credit) = Fund Balance/Net Assets (Credit)* Asset Accounts Examples: Cash Receivables Investments Prepaid Items* Inventory* Liability Accounts Examples: Accounts Payable Accrued Liabilities Fund Balance/Net Assets Accounts Examples: Reserved Fund Balance Unreserved Fund Balance Operating Statement Accounts Examples: Credit Balance Revenues Other Financing Sources Debit Balance Expenditures Other Financing Uses Budgetary Accounts Examples: Debit Estimated Revenues Estimated Other Financing Sources Encumbrances Credit Appropriations Estimated Other Financing Uses The items in blue show the difference for gov’t accounting. We have fund equity accounts like “Reserved for Fund Balance and Unreserved Fund Balance plus we have to keep track of our budgets so we have these Budgetary Accounts. For our Operating Statement Accounts that fall under Fund Equity, we have additional accounts called “Other Financing Sources and Other Financing Uses”. *Fund Balance for Governmental Funds Net Assets for Proprietary/Fiduciary Funds ** If material in amount