Which of the following activities would most likely be accounted for in an Agency Fund that would be reported in the external financial statements?

Question

Quizplus · Accepted Answer

An Agency Fund is used to account for assets the government holds, collects and disburses as an agent for parties outside the government. Tax collections by a county on behalf of local municipalities would be a typical activity that would be accounted for in an Agency Fund, as the county is acting as an agent for the municipalities in collecting and distributing the tax revenue. Interfund loan payments and disbursements, a Federal pass-through grant where the primary government has administrative involvement in the grant program, and special assessments for debt on which the government is not obligated in any manner would not be accounted for in an Agency Fund.

Which of the Following Activities Would Most Likely Be Accounted