A city government sells police cars no longer in use.No restrictions have been placed on the proceeds.Which fund should account for the receipt?
A) Debt service fund
B) Capital projects fund
C) Enterprise fund
D) General fund

Question

Quizplus · Accepted Answer

The best choice for accounting for the receipt from the sale of police cars no longer in use is the General fund. The General fund is used to account for the day-to-day operations of the government, including the sale of surplus property. Since there are no restrictions on the proceed, it makes sense to record the receipt in the General fund where it can be used for any purpose.

A City Government Sells Police Cars No Longer in Use