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Revenues or expenditures of a specific fund may not represent increases or decreases in the net position of the government as a whole. Why is
Revenues or expenditures of a specific fund may not represent increases or decreases in the net position of the government as a whole. Why is this true?
First, the definition: 1) Specific fund: mutual funds which invest in a particular sector or industry are said to be sector-specific funds. 2) Fund: funds are separate fiscal and accounting entities and include both cash and noncash resourcessegregated according to the purposes or activities for which they are to be usedas well as related liabilities. In broad terms, a single fund accounting entity is somewhat like a business accounting entity.
First, the definition: 1) Specific fund: mutual funds which invest in a particular sector or industry are said to be sector-specific funds. 2) Fund: funds are separate fiscal and accounting entities and include both cash and noncash resourcessegregated according to the purposes or activities for which they are to be usedas well as related liabilities. In broad terms, a single fund accounting entity is somewhat like a business accounting entity.
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