According to GASB, which represents an inflow of resources?

• A. Revenues
• B. Expenses
• C. Liabilities
• D. Expenditures

Answer: (A)

Revenues represent an inflow of resources. In GASB accounting, revenues are the amounts that increase a government's net position by bringing resources into the entity, such as taxes, fees for services, fines, grants, and other income. They are recognized when earned or, in the fund perspective, when measurable and available, depending on whether the statements use accrual or modified accrual basis. Expending and expenses are outflows of resources, as they represent payments or obligations to pay for goods, services, or other uses of resources. Liabilities are obligations the government must settle in the future, not inflows. So the term that best describes an inflow of resources is revenues.