Lomond City receives a federal grant to assist in nutrition programs for its senior citizens. The city will select the contractors that will provide meals and approve the participants in the program. The proceeds of this grant should be accounted for in which of the following funds of the city?

Question

Quizplus · Accepted Answer

Governmental funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources, which includes federal grants for programs like nutrition assistance for senior citizens. Enterprise funds are used for services provided to the public on a fee basis, agency funds are custodial in nature and do not involve measurement of results of operations, and private-purpose trust funds are used to report all trust arrangements under which principal and income benefit individuals, private organizations, or other governments.

Lomond City Receives a Federal Grant to Assist in Nutrition