Chapter 2, Problem 19EP

Matching Funds with Transactions. (LO2-3) Choose the letter of the sample transaction in the right-hand column that would most likely be reported in the fund listed in the left-hand column.

Fund	Example
1. Custodial	a. Construction of public buildings.
2. Capital projects	b. Costs of a central purchasing and warehouse function.
3. Debt service	c. Gifts in which the principal must be invested and preserved, while the investment earnings must be used to provide scholarships to children of police officers who died in the line of duty.
4. Enterprise	d. Administrative expenses of the city manager’s office.
5. General	e. Assets held for external government participants in the government’s investment pool for the purpose of earning investment income.
6. Internal service	f. Gifts in which the principal must be invested and preserved but the investment earnings can be used for public purposes.
7. Investment trust	g. Costs of operating a municipal swimming pool.
8. Pension (and other employee benefit) trust	h. Taxes collected on behalf of another government unit.
9. Permanent	i. Assets held in trust to provide retirement benefits for municipal workers.
10. Private-purpose trust	j. Principal and interest payments on general long-term debt.
11. Special revenue	k. Grant revenues restricted for particular operating purposes.