A member of the city council does not understand why governments need to use funds. He believes it makes reporting too complex and that funds should be eliminated. What explanation would you use to help explain why funds are needed? Multiple Choice Funds are necessary to allow the government to provide information about governmental activities separate from business-type activities. Funds are necessary to allow the city council to have increased budgetary control over the amounts spent by the government. Funds are necessary to help increase transparency by showing that legal constraints on spending certain revenues for the specific purpose for which the revenues were intended are being met. The city council person is correct: There is no required reason for fund accounting, it increases difficulty in understanding financial reports, and the city should consider eliminating funds. Activate Wi