The City of Highland Hills receives a federal grant to assist in nutrition (feeding)programs for senior citizens.The City will select the contractors to provide the feeding and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the City?

Question

Quizplus · Accepted Answer

The Special Revenue Fund is used to account for the proceeds of specific revenue sources that are restricted or committed to financing particular activities or services. In this case, the federal grant received by the City of Highland Hills is specifically designated for the nutrition programs for senior citizens, making it a restricted source of revenue that should be accounted for in a Special Revenue Fund.

The City of Highland Hills Receives a Federal Grant to Assist