A government establishes a Permanent Fund to account for a donation. The earnings from the donation are to be used to purchase books for the library. How should the donation be reported in the Permanent Fund statement of revenues, expenditures and changes in fund balance?

Question

Quizplus · Accepted Answer

The donation is a source of income for the government's Permanent Fund, hence it should be reported under revenues.

A Government Establishes a Permanent Fund to Account for a Donation