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AJS 574 Week 3 DQ 2

AJS 574 Week 3 DQ 2
AJS 574 Week 3 DQ 2 -

In a city government using a traditional, line item budget format, you will have expenditure line item account numbers that will be the same in each department. As an example, Every department that has a fuel line item will use the numbers "1100" to identify fuel expenditures. Each department however has its own unique department number, fire might be 4300, police might be 5000 and parks and recreation might be 4600. If the parks and recreation department wanted to code a purchase for fuel it would be coded as 4600-1100. Then finance knows where to draw the money from. If the fire department purchases fuel and needs to code its invoice it would be 4300-1100 and police would be 5000-1100. This is very common among municipalities all over the Country. Does this make sense to everyone? Might we also need to have designations that specifically identify General Fund Accounts from Enterprise Funds? How might we do that?

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