Discuss the reason for the difference between reporting some transactions for governmental activities at the government–wide level, and the transactions for the General Fund.

Explanation of Solution
General Fund: The chief operating fund of state and local government used to record the departmental operating activities and government support services is referred to as General Fund, or General Operating Fund, or General Revenue Fund. The activities recorded in General Funds are police, fire, public works, recreation, education, culture, social services, city office, finance, personnel, and data processing.
Reason: The main reason for the difference in reporting the transactions for governmental activities at the government–wide level, and the transactions for the General Fund is that the governmental activities at the government–wide level are long-term activities, and the revenues and expenses are recorded on the accrual basis, but the transactions for the General Fund are short-term activities, and the revenues and expenses are recorded on the modified accrual basis.
List few examples of transactions that are reported in (a) only the General Fund, (b) only governmental activities at the government–wide level, and (c) both.

Explanation of Solution
(a).
Examples of transactions that are reported in only the General Fund: Budgetary entries and encumbrance entries.
(b).
Examples of transactions that are reported in only governmental activities at the government–wide level:
(c).
Examples of transactions that are reported both in the General Fund and governmental activities at the government–wide level: Purchase of non-capital goods, payment of salaries and wages, and most of the revenues.
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