The earnings on the assets of a permanent fund are to be used to support the city's library (special revenue fund). How would the earnings be recorded?
A) Revenues by the permanent fund.
B) Revenues by the library.
C) Revenues by both the permanent fund and the library.
D) Other financing source by the permanent fund.

Question

Quizplus · Accepted Answer

The earnings on the assets of a permanent fund are recorded as revenues by the permanent fund itself, not directly by the fund or program that benefits from those earnings. The library, in this case, would receive transfers or other financing sources from the permanent fund, not directly record the earnings as revenue.

The Earnings on the Assets of a Permanent Fund Are