Classify Governmental Funds Practice Test

A city council committed $500,000 of unrestricted resources to replace aging police vehicles, but the commitment is internal and not legally restricted by an external party or enabling legislation, and the city expects to purchase the vehicles next year. In which fund should the city account for these resources and the eventual vehicle purchases under GASB standards?

A city received a $600,000 unrestricted donation from a local foundation with no external stipulations, and the city manager plans to use it for general public safety operations (salaries, supplies, and utilities) during the current year. Based on GASB standards, what is the appropriate fund classification for recording this donation and the related operating expenditures?