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4. Describe the fund accounting system.

It organizes the government into discrete accounting entities, called funds, each of which is accounted for separately. The primary purpose of it is to segregate the accounting for these activities so that they can be monitored. It is designed to provide the control mechanism necessary to ensure that cash is spent as appropriated in the budget. Funds are also fiscal entities that, in addition to real/permanent/balance sheet accounts which are closed out at the end of at the end of each accounting period.

10. Describe the current financial resources measurement focus and the modified accrual basis of accounting.

Current financial resources measurement focus recognizes transactions that increase or decrease the resources available for spending during the budget year.

11. Property taxes are an important source of revenue for local governments. Describe the revenue recognition principal related to property taxes.