explain how revenues and expenditures are classified in the General Fund. Solution General Fund General fund is used to account for the general administration and traditional services of government or government organisations. Traditional services include transportation services for public, health and welfare services for public, maintenance of infrastructure used by public in general like road, etc. Operative statement accounts of General Fund record the Revenues and Other Financing Sources and Expenditures and Other Financing Uses. Other Financing Sources means transfer of funds from other funds and long term borrowings. Other Financing Uses means transfer to other fund and payment of borrowings. Revenues- Revenues are recognised when it is measurable and it is available to pay for current period obligations. Classification of Revenue- By Fund By Sources- Taxes- (Ad valorem and Self – assessing)- Ad valorem taxes are taxes which assessed on the value of underlying property, like property tax. Self-assessing taxes are based on income and sales. Special Assessment Tax- It is based on certain particular properties that receive a particular benefit which all taxpayers not receive in general. License and Permits- Revenue from license and permits like business license, liquor license, vehicle license and building permits etc. Intergovernmental revenues- Grants received from governments. Charges for Services- Charges received from services rendered to public. Fines and Forfeits- Fines imposed by courts for violation of law and forfeits are amounts which arise from deposits for breach of contracts. Miscellaneous- Which does not fall in any above category. Expenses- Expenses are recorded when it is incurred and expected to be paid from current available resources Classification of Expenditures- Function- Expenditures towards major areas of services Organisation Unit- Expenditures for particular department or unit Character of Expenditures- Which period is benefitted by the expenditures , past current or future Object .

1. explain how revenues and expenditures are classified in the General Fund.
Solution
General Fund
General fund is used to account for the general administration and traditional services of
government or government organisations. Traditional services include transportation services for
public, health and welfare services for public, maintenance of infrastructure used by public in
general like road, etc.
Operative statement accounts of General Fund record the Revenues and Other Financing Sources
and Expenditures and Other Financing Uses.
Other Financing Sources means transfer of funds from other funds and long term borrowings.
Other Financing Uses means transfer to other fund and payment of borrowings.
Revenues-
Revenues are recognised when it is measurable and it is available to pay for current period
obligations.
Classification of Revenue-
By Fund
By Sources-
Taxes- (Ad valorem and Self – assessing)- Ad valorem taxes are taxes which assessed on the
value of underlying property, like property tax.
Self-assessing taxes are based on income and sales.
Special Assessment Tax- It is based on certain particular properties that receive a particular
benefit which all taxpayers not receive in general.

2. License and Permits- Revenue from license and permits like business license, liquor license,
vehicle license and building permits etc.
Intergovernmental revenues- Grants received from governments.
Charges for Services- Charges received from services rendered to public.
Fines and Forfeits- Fines imposed by courts for violation of law and forfeits are amounts which
arise from deposits for breach of contracts.
Miscellaneous- Which does not fall in any above category.
Expenses-
Expenses are recorded when it is incurred and expected to be paid from current available
resources
Classification of Expenditures-
Function- Expenditures towards major areas of services
Organisation Unit- Expenditures for particular department or unit
Character of Expenditures- Which period is benefitted by the expenditures , past current or
future
Object