A government receives a donation of $300,000 to establish a Private-Purpose Trust Fund. The donation should be reported as

Question

Quizplus · Accepted Answer

The donation should be reported as an addition to the Private-Purpose Trust Fund because it increases the resources available for that specific purpose. Option A (Revenues) is not appropriate because the donation is not earned by the government providing goods or services. Option B (Other financing sources) and Option D (Special items) are not appropriate because the donation is not related to the government's operations or unusual or infrequent in nature.

A Government Receives a Donation of $300,000 to Establish a Private-Purpose