Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?
A) Private-purpose trust fund.
B) Enterprise fund.
C) Internal service fund.
D) Special revenue fund.

Question

Quizplus · Accepted Answer

Special revenue funds are used to account for and report the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. In this case, the federal grant is legally restricted to be used for counseling of youthful offenders, thus a special revenue fund would be the appropriate choice for segregation and use of these funds.

Which of the Following Funds Should Be Used If Resources