If a government has no potential liability for payment of special assessment debt in the event of default by the property owners, then an agency fund may be used to account for the proceeds of the special assessment.

Question

Quizplus · Accepted Answer

Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent. Because there is not liability on the part of the government an agency account is be used.

If a Government Has No Potential Liability for Payment of Special