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. This aligns with option D. The other options do not accurately describe the purpose of a permanent fund under governmental funds.

A Permanent Fund Classified Under Governmental Funds…