Platinum City collects state sales taxes quarterly from local businesses and then gives the state revenue department the money at the end of the year.The sales taxes would go in Platinum City's

Question

Quizplus · Accepted Answer

Agency funds are used to account for resources held by a government in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Since Platinum City collects state sales taxes on behalf of the state and then passes them on to the state revenue department, this activity is best accounted for in an agency fund.

Platinum City Collects State Sales Taxes Quarterly from Local Businesses