An Olympic medalist swimmer who grew up in the city contributed $75,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the swimming complex.The $75,000 would most appropriately be recorded in a(an):

Question

Quizplus · Accepted Answer

The $75,000 contribution is intended for a long-term purpose, specifically for the maintenance of the swimming complex. This fits the definition of a permanent fund, which is used for the benefit of the government and its citizens in perpetuity. The earnings from the investment of the fund can be used to cover the costs of maintaining the swimming complex over the long term. Agency funds are used to hold and distribute resources for specific programs or activities, but they do not involve a long-term benefit to the government. A private-purpose trust fund is used for resources given to the government for a specific purpose, but in this case, the purpose is for the benefit of the government and its citizens. The investment trust fund is used when resources are held separately from the government's general funds, but in this case, the contribution is intended for the government's general funds to be used for a specific purpose.

An Olympic Medalist Swimmer Who Grew Up in the City