A permanent fund classified under governmental funds.....
A) Accounts for most of the basic services provided by the governmental unit
B) Accounts for financial resources intended for major capital projects
C) Accounts for services provided by one department of a government to another
D) Accounts for resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry

Question

Quizplus · Accepted Answer

A permanent fund classified under governmental funds accounts for resources that are legally restricted so only earnings, not principal, may be expended and for purposes to benefit the government and its citizenry. The fund's principal is maintained in perpetuity, and only the income generated from it can be used by the government for specific purposes, such as education or healthcare. This type of fund is typically created to ensure the long-term financial stability of the government and to provide a reliable stream of revenue for essential services.

A Permanent Fund Classified Under Governmental Funds