P2-1 (Discussion of the nature of the three fund categories) Identify and describe the three fund categories used in governmental accounting. For each category, discuss the broad purposes, and illustrate the purposes by identifying several specific fund types. Also, describe the measurement focus and basis of accounting used in making accounting measurements within each category. 1. The city's day-to-day operating activities. 2. Sources of financing and expenditures related to the construction of an office building. 3. Payment of debt service on long-term bonds issued to build the office building. 4. A central activity that acquires supplies and sells them to the various city agencies. 5. A city-owned utility that buys and sells electricity to its residents. 6. A fund that accumulates resources to pay pensions to city employees. 7. An activity that invests funds on behalf of two small neighboring cities. 8. Disposition of sales taxes collected by the city on behalf of the county where it is located.