Final answer:
The statement that an agency relationship involving the collection of revenues on behalf of multiple funds or governments usually requires an agency fund is true, as it ensures accountability and transparency for these custodial activities. The correct option is a.
Step-by-step explanation:
The collection of revenues by one government for several of its funds and/or for other governments and their funds usually necessitates the creation of an agency fund. This is because an agency fund is used to account for resources held by a government in a purely custodial capacity.
When a government entity collects taxes, grants, or other revenues on behalf of multiple funds or other governments, it acts as an intermediary rather than the end user of those funds.
As a custodian, it must ensure that these intergovernmental revenues are distributed to the appropriate parties according to legal and regulatory requirements. To maintain accountability and transparency, an agency fund is established, which keeps these custodial activities separate from the government's own finances.
Therefore, the statement that an agency relationship as described would usually necessitate the creation of an agency fund is True. The correct option is a.