The general fund collects taxes that are legally restricted for use in a future year. The amount of the collections is reported on the general fund's: A. Balance sheet as a deferred inflow. B. Operating statement as an other financing source. C. Operating statement as revenues. D. Balance sheet as a liability.

Answer: A. Balance sheet as a deferred inflow.

Explanation:

A general fund is the primary fund used by a government entity. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity