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?

Question

Quizplus · Accepted Answer

The general fund would account for the proceeds of the sale. The general fund accounts for most of the basic services provided by the government. It accounts for and reports all financial resources not accounted for and reported in another fund. Capital projects funds account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays. Enterprise funds are used when resources are provided primarily through the use of sales and service charges to parties external to the government. Debt service funds account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest, other than interest or principal on proprietary or fiduciary activities.

A City Government Sells Police Cars No Longer in Use