Bevo County levies a property tax of $10 million. Of this amount, $6 million pertains to the activities of Bevo County's General Fund, while the other $4 million pertains to and will be remitted to the 10 villages within the County. The County anticipates that it will collect the entire $10 million that has been levied.
-How much revenue should Bevo County recognize in its Agency Fund?

Question

Quizplus · Accepted Answer

Revenue should not be recognized in the Agency Fund. The Agency Fund is not used for the County's own revenue or expenditures but is merely a custodial account for other parties' resources. The revenues collected in the Agency Fund should be distributed to the appropriate parties, and any remaining monies should be returned to the resource providers. Thus, revenue should not be recognized in the Agency Fund.

Bevo County Levies a Property Tax of $10 Million