Note: This Is a Kaplan CPA Review Question

question 56

Multiple Choice

Note: This is a Kaplan CPA Review Question
A state government collected income taxes of $8,000,000 for the benefit of one of its cities that imposes an income tax on its residents. The state remitted these collections periodically to the city. The state should account for the $8,000,000 in the

• A) General fund.
• B) Agency funds.
• C) Internal service funds.
• D) Special assessment funds.