Each department in a large city maintains its own fleet of vehicles. The cost of purchasing and maintaining the vehicles is financed through the General Fund. One day, the mayor walks past the parking lot of the Parks Department and notices that many vehicles are not being used. The mayor calls her finance commissioner into the office and says: “Couldn’t we save money by setting up a central motor pool and requiring each department to use a pool vehicle whenever they need one?” The finance commissioner replies: “Yes, that will save us lots of money, but we will need to change our accounting system a bit to handle it.” Discuss the fund accounting implications of the finance commissioner’s reply.
Answer to relevant QuestionsDuring a heated campaign for mayor of Hoschkosh, an unsuccessful candidate said: “I will do away with all the special interests in government. I will abolish all the Special Revenue Funds and merge that money with the ...State whether the following sentences are true or false regarding the nature of fiduciary- type funds and the accounting measurements within them. If the sentence is false, state why. 1. Governments may access the resources ...What is the purpose of a budget calendar? Sleepy Hollow’s General Fund budget for fiscal 2013 is based on the following estimated revenues and appropriations. Is Sleepy Hollow projecting a budgetary surplus or a deficit for 2013? Prepare the journal entry to ...A city adopted the following budget for its General Fund for 2013. Prepare the journal entry to record the budget.Estimated Revenues Property taxes.......... $ 9,500,000Sales taxes ............ 1,835,000Fines and ...
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