You are the finance director of Bloomfield City. Recently, the voters of your city approved a special
Question:
You are the finance director of Bloomfield City. Recently, the voters of your city approved a special property tax to finance the purchase of new books and software for the local library. The day the first receipts from this new tax arrived, you ate lunch with the mayor. After finishing his second piece of pie, the mayor suggested that you record the proceeds of this tax in the General Fund. “I know that this is a dedicated tax, but we need the money now to pay for the new computers and police cars we just purchased. This fall, when sales tax collections peak, we will buy some books and software for the library. If sales tax collections are down, the library patrons will just have to reread the old books.” Assuming that the mayor is a reasonable person, how would you respond to his comments?
Step by Step Answer:
Introduction To Government And Not For Profit Accounting
ISBN: 9780130464149
5th Edition
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch