What are the broad types or classifications of funds for a governmental entity such as a city?
A) General, governmental, and trust funds.
B) Governmental, proprietary, and fiduciary funds.
C) Revenue, trust, and governmental funds.
D) Enterprise, revenue, and fiduciary funds.
E) Governmental, agency, and enterprise funds.

Question

Quizplus · Accepted Answer

Governmental entities such as cities typically have three broad types of funds: governmental funds, proprietary funds, and fiduciary funds. Governmental funds are used to account for general operations and activities, such as the general fund and special revenue funds. Proprietary funds are used for business-like activities, such as enterprise funds and internal service funds. Fiduciary funds are used to hold and manage resources that the government holds in trust for others, such as pension trust funds and investment trust funds. Choice B correctly identifies these three types of funds.

What Are the Broad Types or Classifications of Funds for a Governmental