can you respond to this calssmate

Melina Carrasco,

General funds are defined as funds that used to account for all transactions of governmental unit that are not accounted for in another fund. Special Revenue funds is defined the fund used to report resources form specific taxes or other earmarked revenue sources that are restricted or committed to finance particular functions or activities of government. The purpose of General fund is to usually pay for the town expenses. The capital fund will be used for large project and another fund that is like a rainy-day fund is used for small projects and emergencies when the town or city needs it. A special revenue fund is to finance and operate the smaller projects. Modified accrual basis of accounting is a basis of accounting required for use by governmental funds in which revenues are recognized in the period in which they become available and measurable; expenditures are recognized at the time of the liability incurred. In other words, Modified accruals accounting is a different way to do bookkeeping. During the accounting period the revenue are recognized which they then will become susceptible to accrual which mean they become measurable and available to finance expenditures of the fiscal period.