The voters of the city passed an ordinance to increase their sales tax by 1/4 percent. The proceeds of the sales tax are to be used for culture and recreation. In the governmental activities journal, how would the 1/4 percent sales tax revenue be recorded?

Question

Quizplus · Accepted Answer

Sales tax revenue is typically recorded as General Revenue rather than Program Revenue because it is not restricted to a specific program but is available for general governmental purposes, even if the intent is to use it for culture and recreation.

The Voters of the City Passed an Ordinance to Increase