A Private-Purpose Trust Fund has investments totaling $1,500,000. As of the end of the fiscal year, the fair market value of these investments increased by $125,000 from the previous year. The Private-Purpose Trust Fund would

Question

Quizplus · Accepted Answer

Private-Purpose Trust Funds report additions and deductions, not revenues or transfers. The fair market value increase of $125,000 is an addition to the fund's investments, therefore it would be reported as such in the financial statements.

A Private-Purpose Trust Fund Has Investments Totaling $1,500,000