Revenue and Expense Equation (Fund product only)
The Revenue and Expense Report is a reflection of the following accounting equation:
FUND BALANCE = REVENUE - EXPENSE
Revenue: The increase in the economic resources (generally cash or receivables) of an organization.
Expense: Expense is the required consumption of economic resources necessary to operate the organization.
Fund Balance: When revenue exceeds the expenses of an organization, the result is net revenue.
Published date: 04/08/2020