If a government forecloses on property because of unpaid taxes in the General Fund, which of the following funds and/or accounts would most likely be affected by the transaction?

Question

Quizplus · Accepted Answer

The foreclosure due to unpaid taxes in the General Fund affects both the General Fund and General Capital Assets accounts. The General Fund is impacted because it is responsible for collecting taxes and paying for government services, including property maintenance and foreclosure expenses. The General Capital Assets accounts are affected because the property being foreclosed upon is a capital asset of the government.

If a Government Forecloses on Property Because of Unpaid Taxes