financial management information system - National Food Service ...

S ECTION 2BASIC F INANCIAL S TATEMENTSReserved for EncumbrancesFund Balance DefinitionsThis reflects the amount of the fund balance reserved for outstanding purchase orders.Reserved for InventoriesThe value of inventories of foods and supplies under assets is recorded here.Invested in Capital Assets (minus depreciation)This account is used to record the net assets in capital assets which represents total capital assets less accumulateddepreciation. Examples include major equipment and furniture.Unreserved Fund BalanceThis is the excess of the assets of a fund over its liabilities, fund reserves, and designations.N ATIONAL F OOD S ERVICE M ANAGEMENT I NSTITUTE 22