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A city taxes merchants for various central district improvements. Which of the following accounting methods assist(s) in assuring that these revenues are expended legally?

Fund Accounting Budgetary Accounting

Yes No
No No
Yes Yes
No Yes

User Snctln
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1 Answer

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Answer: Yes Yes

Step-by-step explanation:

Fund Accounting in relation to the public sector is used to record resources which are to be restricted in their use by the the law and the main emphasis under this accounting system is to be accountable for the funds given not to record profit. It can therefore be used to ensure that the revenues the city gets will be spent legally by making sure that the entries reflect accountability from those who use it.

Budgetary Accounting in the public sector as well can be useful for seeing that revenues are expended legally as it is based on budgets which list the amounts that should go towards each project to be undertaken and which follow legal compliance.

User ScottyG
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