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The amount that the city should most likely report as revenues in its
special revenue funds is
. During the year, Brian County collects $12 million of property
taxes on behalf of Urton Township. Of this amount it remits $10
million to the township, expecting to remit the balance shortly after
the end of its fiscal year. The amount of revenue that the county
should report is
9. A city receives a $30 million contribution. The donor stipulates
that the money is to be invested. The principal is to remain intact
and the investment proceeds are to be used to provide scholarships
for the children of city employees. The contribution should be
reported as revenue of a
EX. 2-5
E2-5 page 78
Funds are separate fiscal and accounting entities, each with its own self-
balancing set of accounts.
The newly established Society for Ethical Teachings, a not-for-profit
organization, maintains two funds—a general fund for operations and a
building fund to accumulate resources for a new building. In its first year,
it engaged in the following transactions:
1. It received cash contributions of $200,000, of which $40,000 were
restricted to the acquisition of the new building.
2. It incurred operating costs of $130,000, of which it paid $120,000 in
cash.
3. It earned $3,000 of interest (the entire amount received in cash) on
resources restricted to the acquisition of the new building.
EX. 3-1
Select the best answer.
1. Appropriation budgets are typically concerned with
2. Which of the following types of budgets would be most likely to
include a line item “purchase of supplies”?