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In Some Local Government Financial Reports You Will Find Activities

question 12

Essay

In some local government financial reports you will find activities such as solid waste disposal and sewage disposal accounted for as a part of the General Fund.In other reports apparently identical activities are accounted for as enterprise funds.Under what conditions would each treatment be proper?


Definitions:

Special Journals

Ledger books dedicated to recording specific types of transactions, such as cash receipts or disbursements, distinct from general accounting records for efficiency and accuracy.

Computerized Accounting Systems

Software programs that manage and process financial transactions and accounting tasks electronically, increasing accuracy and efficiency.

Automated Business Systems

Systems that use technology to perform and manage business processes automatically, enhancing efficiency and reducing manual intervention.

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as accounts receivable or inventory details.

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