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Guide to what is general fund What amounts should have been recorded in the general fund and enterprise fund for the increase in equipment during the year ended december 31, assuming the electric utility is considered an enterprise fund? Here, we explain the concept along with its example and comparison with special revenue fund.

Governmental funds general fund • accounts for all revenue and expenditures that are not accounted for elsewhere and is usually the operating fund of a governmental entity. A requirement to account for and report on the receipt, use, and retention of the revenues and other financing sources that distinguishes the earmarked fund from the government’s general revenues. Governmental entities use various funds to account for resources that are earmarked by external restrictions or internal directives for specific purposes

Unlike these special revenue, capital projects, debt service, or permanent funds, the general fund is more comprehensive and flexible in nature.

Special revenue funds, on the other hand, are used to track revenues that are legally restricted or committed for specific purposes, such as transportation or education programs This distinction ensures transparency by separating general operating money from funds earmarked for targeted uses. Budget information must be disclosed for the general fund and each major fund within the special revenue funds.

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