Which of the following is used to service all operations of government?

JAMB Accounting 2023 81 views

Which of the following is used to service all operations of government?

  1. consolidated revenue fund ✓
  2. consolidated reserve fund
  3. special operational fund
  4. general reserve fund

Explanation

Consolidated revenue fund pools all government income from taxes, fees, and other sources. This main fund pays for all normal government operations and services throughout the year.

Reserve funds are savings for specific purposes or emergencies. Special operational funds serve particular projects. The consolidated revenue fund is the primary operating account for government.

Think of it as the government’s main checking account that all revenue flows into and expenses flow out of.

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