When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?
A) The general fund.
B) A private purpose trust fund.
C) A permanent fund.
D) An agency fund.
E) A special Revenue fund.

Question

Quizplus · Accepted Answer

A permanent fund is used to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that benefit the government or its citizens.

When a City Received a Private Donation of $1,000,000 Stipulating