Which of the following accounts is not closed at the end of the reporting period?

• A. Revenues
• B. Expenditures
• C. Deferred inflows of resources
• D. Budgetary Fund Balance

Answer: (C)

In governmental fund accounting, the closing process applies to temporary accounts that affect the current period’s results and to budgetary accounts, while balance-sheet-type items carry forward. Revenues and expenditures (and their related financing sources/uses) are closed to the fund balance at year-end, and the budgetary accounts (like estimated revenues and appropriations) are closed to Budgetary Fund Balance.

Deferred inflows of resources, however, are balance-sheet items representing resources that are not yet available to finance current expenditures. They are not closed to fund balance; instead, they remain on the balance sheet and are released to revenue when the related resources become available. That’s why this account is not closed at the end of the reporting period.