Why do the balance sheets of agency funds contain only assets and liabilities, but no fund balances?

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Why do the balance sheets of agency funds contain only assets and liabilities, but no fund balances? Why is it often unclear whether the resources relating to a particular activity should be accounted for in an agency fund or a governmental fund?

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Government and Not for Profit Accounting Concepts and Practices

ISBN: 978-1118155974

6th edition

Authors: Michael H. Granof, Saleha B. Khumawala

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Question Posted: Sep 21, 2024 05:13 AM

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Why do the balance sheets of agency funds contain only assets and liabilities, but no fund balances?

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Agency funds are custodial in natureAll assets are held for the ...View the full answer

Government and Not for Profit Accounting Concepts and Practices

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