Carter County, like all other counties in the state, shares in the proceeds of a state-levied sales
Question:
Carter County, like all other counties in the state, shares in the proceeds of a state-levied sales tax. The state requires all recipient counties to use the proceeds for capital improvements to local streets and highways. Carter County’s share for the current fiscal period was $105,000.
Assume that the funds meet the availability criteria.
How would Carter County report these revenues in its government-wide financial statements?
a. $105,000 as governmental activities general revenues.
b. $105,000 as operating grants and contributions in the public works function.
c. $105,000 as capital grants and contributions in the public works function.
d. $105,000 as governmental activities general revenues but reported separately from unrestricted grants.
Step by Step Answer:
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,