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2 February, 03:39

A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds?

a) General fund.

b) Private-purpose trust fund.

c) Agency fund.

d) Permanent fund

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  1. 2 February, 03:47
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    Permanent fund

    Explanation:

    This is a fund that are provided under trust agreements that are restricted so that only earning that are expended for the purposes might benefir the public

    The government is under obligation to follow the stipulations of the trust and cannot unilaterally change the purpose of the trust. Trust that benefit the public through the government for the purpose of a particular thing is know as permanent fund
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