In short
The general fund is a government's main operating fund. It accounts for all financial resources not required to be accounted for in another fund, such as police, fire and administration.
Key takeaways
- It is a governmental fund, so it uses the modified accrual basis and current financial resources focus.
- Every general-purpose government has exactly one general fund.
- Transfers to other funds are other financing uses, not expenditures.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A city levies $1,000,000 of property taxes, expecting 2% to be uncollectible. It collects $950,000 during the year and $20,000 within 60 days after year-end. What property tax revenue is recognized in the General Fund?