Chap017-baker 1

Chap017-baker 1 - a General fund b Special revenue fund c...

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Chapter 17 - Governmental Entities: Introduction and General Fund Accounting 17-1 CHAPTER 17 GOVERNMENTAL ENTITIES: INTRODUCTION AND GENERAL FUND ACCOUNTING ANSWERS TO QUESTIONS Q17-1 A fund is an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. A fund may receive resources from a variety of sources, including collection of taxes on property, income, or commercial sales; receipt of grants, fines, or licenses; and collection of service charges. Q17-2 The eleven funds generally used by local and state governments are: Governmental
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Unformatted text preview: a. General fund b. Special revenue fund c. Capital projects fund d. Debt service fund e. Permanent fund Proprietary f. Internal service fund g. Enterprise fund Fiduciary h. Pension trust fund i. Investment trust fund j. Private-purpose trust fund k. Agency funds The purpose of each fund is individually discussed below: a. General fund : All financial resources except those required to be accounted for in another fund are accounted for in the general fund. b. Special revenue fund : The proceeds of specific revenue sources that are legally restricted for specified purposes are accounted for in the special revenue fund. c. Capital projects fund : Financial resources to be used for the acquisition or construction of major capital projects that will benefit a large population are accounted for in the capital projects fund....
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