Choice "A" is correct. Three of Sig City's reported funds would use the accrual basis of accounting: the Internal Service Fund, the Airport enterprise fund and the Pension trust fund. We remember the basis of accounting used by each of our funds with the GRaSPP SE PAPI mnemonic and apply it to Sig City as follows:
Governmental
GRaSPP
Modified Accrual | | Proprietary
SE
Accrual | | Fiduciary
PAPI
Accrual |
General | | Internal Service | | Pension Trust |
Special Revenue | | Airport Enterprise | | |
Debt Service | | | | |
Capital Projects | | | | |
Funds which complete the mnemonic but are not used by Sig City include: |
Permanent | | | | AgencyPrivate purposeInvestment trust |
Choices "d", "c", and "b" are incorrect per above.
