The Material in Chapter 2 Is Best Suited for Two

question 56

Essay

The material in Chapter 2 is best suited for two types of problems:
1. Matching funds to fund types or fund definitions; and
2. Transaction analysis.
Since transactions are an essential part of Chapters 3 through 12 and 16 through 18, we recommend using the transaction analysis with journal entries in those chapters. To that end, transaction analysis will be demonstrated in those chapters.
Indicate how the following funds types would be classified as to category: G governmental, P proprietary, or as F fiduciary.
1. Internal Service
2. Agency
3. General
4. Special Revenue
5. Investment Trust
6. Capital Projects
7. Debt Service
8. Pension Trust
9. Permanent
10. Enterprise
11. Private-Purpose Trust
Since transactions are an essential part of Chapters 3 through 12 and 16 through 18, we recommend using the transaction analysis with journal entries in those chapters. To that end, transaction analysis will be demonstrated in those chapters.
Indicate how the following funds types would be classified as to category: G governmental, P proprietary, or as F fiduciary.
1. Internal Service
2. Agency
3. General
4. Special Revenue
5. Investment Trust
6. Capital Projects
7. Debt Service
8. Pension Trust
9. Permanent
10. Enterprise
11. Private-Purpose Trust

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Definitions:

High-low Method

A technique used in cost accounting to estimate fixed and variable costs associated with production by using the highest and lowest levels of activity.

Office Expense

Refers to the costs associated with running an office, including rent, supplies, and utilities.

Escrow Completed

The point at which all conditions of a real estate transaction are met and the title of the property is transferred from the seller to the buyer.

Monthly Fixed Cost

Regular expenses that do not vary with production level or sales volume, incurred on a monthly basis.