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Which of the following accounts is least likely to be used by a tax agency fund?

a. Revenues
b. Taxes receivable for other funds and units
c. Due to other funds and units
d. Cash

User Hridayesh
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1 Answer

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Final answer:

The account least likely to be used by a tax agency fund is a. Revenues, as the fund's primary role is to collect and distribute taxes rather than to generate its own revenue.

Step-by-step explanation:

The question addresses which account is least likely to be used by a tax agency fund. A tax agency fund is a type of governmental accounting entity responsible for collecting taxes on behalf of different government departments or agencies before distributing those funds accordingly. The accounts that are generally active in a tax agency fund include:

  • Revenues: This account records the income received from taxes or other sources.
  • Taxes receivable for other funds and units: This represents the taxes that have been billed but not yet collected, which are owed to other funds and governmental units.
  • Due to other funds and units: This account indicates the amounts that are due to other funds or government units from the tax agency fund.
  • Cash: This account holds the actual currency and coins, checks, money orders, and balances in bank accounts.

Among these options, a. Revenue is the least likely account to be used by a tax agency fund because it typically deals with monies that it has collected on behalf of other departments or agencies rather than generating its own revenue.

User Reallyinsane
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