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

Tax collections by a county on behalf of local municipalities would most likely be accounted for in an Agency Fund, which is used to account for resources held in a fiduciary capacity for others. The external financial statements require reporting of such fiduciary activities. Interfund loan payments and disbursements, a Federal pass-through grant, and special assessments for debt on which the government is not obligated would not be accounted for in an Agency Fund.

Which of the Following Activities Would Most Likely Be Accounted