The state collects a gasoline tax that must be used to support highway construction and maintenance.The gasoline tax should be accounted for in which of the following funds?

Question

Quizplus · Accepted Answer

The gasoline tax is a specific revenue source that is designated for a particular purpose, in this case highway construction and maintenance. Therefore, it should be accounted for in a special revenue fund, which is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.

The State Collects a Gasoline Tax That Must Be Used