Governments that centralize their risk financing activities should not account for this activity in which type of fund?

Question

Quizplus · Accepted Answer

Governments that centralize their risk financing activities should account for this activity in a separate Permanent Fund. This fund is used to accumulate resources to pay for losses and associated costs from risk financing activities, such as insurance premiums and deductibles. Centralizing risk financing activities in a dedicated fund allows for better monitoring and management of these activities, as well as increased transparency in financial reporting. The other funds listed (General Fund, Internal Service Fund and Special Revenue Fund) are not appropriate for accounting for risk financing activities.

Governments That Centralize Their Risk Financing Activities Should Not Account