A government receives a donation of $300,000 to establish an endowment fund whose income is to be used to support scholarships for local high school students. The school district is not part of the government. The government should report this activity in which type of fund?

Question

Quizplus · Accepted Answer

The donation is a private-purpose donation, as it is designated for scholarships for local high school students. Therefore, the government should report it in a Private-Purpose Trust Fund.

A Government Receives a Donation of $300,000 to Establish an Endowment