Sales taxes levied by a county government are shared with the local municipal government. The municipal government chooses to use the intergovernmental revenues for drug enforcement activities.
In the government-wide statement of activities, the municipal government would report the sales taxes as
A. Unrestricted grants and contributions general revenue.
B. Operating grants and contributions program revenue.
C. Capital grants and contributions program revenue.
D. A transfer in general revenue.
Question 2
The totals at the bottom of the trial balance and the totals at the bottom of the balance sheet both show equality andbalancing, and therefore should be equal.
a. True
b. False
Indicate whether the statement is true or false
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