A state enacts a gasoline tax that is restricted for new highway construction. Which fund should be used to account for the proceeds from the tax?

Question

Quizplus · Accepted Answer

The gasoline tax is specifically restricted for new highway construction, so the Capital Projects Fund should be used to account for the proceeds from the tax. The Debt Service Fund is used to account for the payment of principal and interest on long-term liabilities, and the General Fund is used for general operations and expenses. The General Long-Term Liabilities Fund is used to account for long-term debts that are not related to a specific project, which does not apply in this scenario.

A State Enacts a Gasoline Tax That Is Restricted for New