Various funds and account groups. Select the best response for each of the following multiple-choice questions. (Nos. 1–8 are AICPA adapted.) 1. In 2019, a state government collected income taxes of...

Various funds and account groups. Select the best response for each of the following multiple-choice questions. (Nos. 1–8 are AICPA adapted.)

1. In 2019, a state government collected income taxes of $8,000,000 for the benefit of one of its cities that imposes an income tax on its residents. The state periodically remitted these collections to the city. The state should account for the $8,000,000 in the

a. general fund.

b. agency funds.

c. internal service funds.

d. special assessment funds.