Upon examining the balance sheet of a large city, you notice that the total assets of the general fund far exceed those of the combined total of the city's ten seperate special revenue funds. Moreover, you observe that there are no funds for public safety, sanitation, health and welfare, and general administration -- all important functions of the government. Why do you suppose the city hasn't attempted to "even out" the assets in the funds? Why does it not maintain funds for each of its major functional areas?" I feel this answer has to do with how funds are balanced and restriction placed on funds. If everything is in the
I have a question from "Government and Not-for-Profit Accounting" book Eighth Edition. Chapter 2 under "Questions for Review and Discussion" question 5.
"Upon examining the
I feel this answer has to do with how funds are balanced and restriction placed on funds. If everything is in the general fund, they are typically funds gathered from tax payers and are distributed as the need is for each section because of the lack of strict restriction. But I am having a hard time finding confirmation in the book and do not know if my mind is going the right direction with this question.
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