A local golfer contributed $100,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the city golf course.The $100,000 would most appropriately be recorded in a(an)

Question

Quizplus · Accepted Answer

A permanent fund is established for the purpose of earning income that is to be used for the benefit of the government or its citizens. In this case, the $100,000 is being held permanently and the earnings will be used for maintenance of the city golf course, making it a fitting example of a permanent fund. The other options (agency fund, private-purpose trust fund, investment trust fund) are not appropriate because they do not fit the requirements of the donation in this scenario.

A Local Golfer Contributed $100,000 to the City Stipulating That