Question

The General Fund is used to account for:

a. General administration of government
b. Construction of major capital assets
c. Revenues and expenditures legally restricted to a specific purpose
d. The accumulation of resources to pay for principal and interest on the current portion of long-term debt.

Answer 1

The General Fund is used to account for various purposes, including general administration of government, construction of major capital assets, and revenues and expenditures legally restricted to a specific purpose.

Step-by-step explanation:

Definition:

The General Fund is used to account for:

1. General administration of government
2. Construction of major capital assets
3. Revenues and expenditures legally restricted to a specific purpose
4. The accumulation of resources to pay for principal and interest on the current portion of long-term debt

Example:

For example, if a government collects taxes specifically for the construction of a new school, those tax revenues would be accounted for in the General Fund and can only be used for the purpose of constructing the school.