Which of the following is incorrect with respect to fund balances?

Multiple Choice

Inventory and prepaid items are classified as nonspendable fund balances.

Assigned fund balances are resources that the governing body has specified for a particular use through ordinance or resolution by the government$$s highest level of authority.

Restricted fund balance are net resources of a government fund that are subject to constraints imposed by external parties or by law.

Only unassigned fund balances may have a negative balance.