The county received a $10,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide medical services to low-income children. Where would the $10,000,000 be recorded?
A) Special revenue fund.
B) Permanent fund.
C) Private-purpose trust fund.
D) Public-purpose trust fund.

Question

Quizplus · Accepted Answer

The $10,000,000 endowment would be recorded in a permanent fund as it is a long-term investment intended to generate income for a specific purpose (providing medical services to low-income children). The earnings on this fund would then be transferred to a special revenue fund for use by health and welfare to provide the medical services.

The County Received a $10,000,000 Endowment, the Terms of Which