In order for a fund to exist, there must be
A) Assets set aside for specific purposes
B) A separate revenue stream
C) A double-entry accounting entity
D) A and C are correct

Question

Quizplus · Accepted Answer

A fund is a separate accounting entity that is set up to hold assets for specific purposes. In order for it to function properly, there must be a double-entry accounting system in place to track its income, expenditures, and balances. Additionally, there must be a separate revenue stream to fund the activities or projects that the fund is meant to support. Both options A and C describe these necessary elements, so the correct answer is D.

In Order for a Fund to Exist, There Must Be