Choice "C" is correct. For a local government's government-wide statement of activities, charges for services are reported as program revenue. Program revenue is revenue directly associated with a program or function. Remember the categories of program revenue and recall that the government can "SOC" away these revenues:
S | Charges (for services) |
O | Operating grants and contributions |
C | Capital grants and contributions |
Choice "b" is incorrect. Taxes are not program revenue. Even though the taxes are levied for the specific function, taxes are not revenue. The words "levied for a specific function" were included to attempt to confuse.
Choice "d" is incorrect. Proceeds from the sale of a capital asset used for a specific function are not program revenue. Again, the words "used for a specific function" were included to confuse.
Choice "a" is incorrect. Interest revenue is not program revenue.
