One of the most basic concepts to understand in governmental accounting is fund accounting. In a for-profit organization there is only one "set" of books, or simply put, one balance sheet and one income statement. In government, there are many "sets" of books, in that each fund has its own balance sheet and income statement, although they are called by different names. This is one reason so many people struggle to understand the operations of government. As you are reading this week, there are several different types of funds. The largest of these are called "Governmental Funds", and are used to account for general government activities (basic services). Governmental Funds include the following types:

1. General Fund- primary operating fund

2. Special Revenue Funds- legally restricted for specific purposes

3. Debt Service Fund - accounts for payment of long-term debt

4. Capital Projects Funds - accounts for the construction or acquisition of major capital projects

For this additional question I want you use the governmental entity that you analyzed for the DQ1, pick one of the above types of funds, and then see if your entity has any of these finds in their financials. Discuss what you found with the class and describe the activity you found in the fund.