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Ashby City Receives a Federal Grant to Assist in Nutrition

Question 49

Multiple Choice

Ashby City receives a federal grant to assist in nutrition programs for its senior citizens. Senior citizens whose income is below a specified amount (the amount was specified by the Federal government) are eligible to participate in the program. Monthly checks of $100 (this amount was specified by the Federal government) will be mailed to eligible senior citizens. The proceeds of this grant should be accounted for in which of the following funds of the city?


A) General fund.
B) Special revenue fund.
C) Agency fund.
D) Private-purpose trust fund.

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