Chapter 17, Problem 17.3.1E

To determine

Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.Goods and services are acquired in the government units using a hierarchy which included budget preparing, planning expenses, calculating encumbrances, etc.

To choose: The correct answer.