B is corrent because Special Revenue Funds are funds established to receive funds from specific sources (e.g., city’s share of state gasoline tax revenue) to be expended for a legally restricted current purpose (e.g., street maintenance). Excluded from this definition are trusts and major capital projects. The $995,000 relates to funds from the federal government dedicated to highway maintenance. None of the other items in the information given would be recorded in a Special Revenue Fund.
A is incorrect. Special Revenue Funds are funds established to receive funds from specific sources (e.g., city’s share of state gasoline tax revenue) to be expended for a legally restricted current purpose (e.g., street maintenance).
A is incorrect. Special Revenue Funds are funds established to receive funds from specific sources (e.g., city’s share of state gasoline tax revenue) to be expended for a legally restricted current purpose (e.g., street maintenance).
D is incorrect. Special Revenue Funds are funds established to receive funds from specific sources (e.g., city’s share of state gasoline tax revenue) to be expended for a legally restricted current purpose (e.g., street maintenance).
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