When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?
A) the General Fund.
B) an Expendable Trust Fund.
C) a Permanent Fund.
D) an Agency Fund.
E) a Special Revenue Fund.

Question

Quizplus · Accepted Answer

The donation fits the criteria for a Permanent Fund, which is a type of fund where the principal amount is preserved, and only the interest earned is available for expenditure. This allows for the long-term preservation of the donated amount and ensures that the funds will continue to benefit the community for years to come.

When a City Received a Private Donation of $1,000,000 Stipulating