State and Local Government Concepts

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Question

What fund is used for the main operating activities of a government?

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Answer

General Fund.

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Question

What does restricted fund balance mean?

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Answer

Externally constrained by creditors, grantors, law, or constitution.

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Question

Why do government-wide statements use full accrual accounting?

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Answer

They report all assets and liabilities.

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Question

Why is there only one General Fund?

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Answer

It accounts for everything not required elsewhere.

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