A city library imposes a fee on patrons to access its electronic databases. The fee has been earmarked to maintain database subscriptions. However, city officials have the authority to redirect the fees to any public use:

1) Should this fee be accounted for in a general fund or a special revenue fund? Why?

2) Is the collection of the fee an exchange or nonexchange transaction? Provide an appropriate rationale for your answer?

3) Would your previous response change if the city officials were not able to redirect the library fee? Why or why not?

Answer rating: 100% (QA)

1 The fee should be accounted for in a special revenue fund The purpose of the fee is to maint... View the full answer