Chapter 9, Problem 17.12EP

A city established a special revenue fund for gas tax revenues that the state has indicated must be expended for street construction, maintenance, and repair. How would the fund balance for the special revenue fund be classified?

1. a.         Committed.
2. b.         Assigned.
3. c.          Restricted.
4. d.         Unassigned because this involves tax revenues that are always considered general revenues.