Ken Mead, newly elected mayor of Bronson City, promised the citizens during his campaign that he would

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Ken Mead, newly elected mayor of Bronson City, promised the citizens during his campaign that he would not raise taxes during his tenure as mayor. He asks his new commissioner of finance to analyze the city’s financial statements to see whether the city has “any extra money lying around” to help keep taxes down. The commissioner of finance notices the caption “Unassigned fund balance” on the city’s General Fund balance sheet. The commissioner shows the financial statements to the mayor and says: “ See that Unassigned fund balance? Looks like a slush fund to me. Why don’t we just use it to help keep taxes down?” How would you advise the mayor about this matter?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Introduction to Governmental and Not for Profit Accounting

ISBN: 978-0132776011

7th edition

Authors: Martin Ives, Terry K. Patton, Suesan R. Patton

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