Accounting for General fund And Special Revenue Fund | Public Sector Acconting | Chapter five

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General Fund

Purpose: The primary operating fund of a government. It accounts for most of the basic services provided to citizens.  
Funding Sources: Includes general tax revenues (property, sales, income), fees for services, and other revenues not restricted for specific purposes.  
Examples of Expenditures: Police and fire protection, general administration, parks and recreation, public works.  
Key Feature: Provides flexibility in how resources are allocated to meet the government's overall objectives.
Special Revenue Fund

Purpose: Accounts for revenue sources that are legally restricted or committed to expenditure for specific purposes (other than debt service or major capital projects).  
Funding Sources: May include dedicated taxes, grants, or other revenue streams earmarked for a particular activity.  
Examples of Expenditures:
A local sales tax dedicated to transportation improvements.  
State grants for specific education programs.  
Fees collected for environmental protection activities.
Key Feature: Ensures that resources are used only for their designated purpose, promoting transparency and accountability.




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