Under GASB, which term represents an inflow of resources?

Under GASB, which term represents an inflow of resources?

• A. Assets
• B. Revenues
• C. Liabilities
• D. Debits

Answer: (B)

In GASB terminology, inflows of resources are revenues. Revenues come from the government’s ongoing activities—providing services, selling goods, or from nonexchange transactions like taxes or grants—and they increase the government’s net position. They’re recognized when measurable and, for funds, available for use. Assets are the resources the government owns, not the inflows themselves. Liabilities are obligations to future sacrifices of resources, not inflows. Debits are a accounting entry side used in double-entry bookkeeping, not a category of inflows.

In GASB terminology, inflows of resources are revenues. Revenues come from the government’s ongoing activities—providing services, selling goods, or from nonexchange transactions like taxes or grants—and they increase the government’s net position. They’re recognized when measurable and, for funds, available for use.

Assets are the resources the government owns, not the inflows themselves. Liabilities are obligations to future sacrifices of resources, not inflows. Debits are a accounting entry side used in double-entry bookkeeping, not a category of inflows.