A city receives a donation from a citizen who specifies that the principal must be invested, and the earnings must be used to support operations of a city-owned recreational facility. The principal of this gift should be accounted for in which of the following funds?

Question

Quizplus · Accepted Answer

A Permanent fund is used for situations where the principal of a donation must be kept intact (not spent), and only the earnings from the principal can be used for specific purposes, such as supporting operations of a city-owned recreational facility. This aligns with the conditions of the donation described.

A City Receives a Donation from a Citizen Who Specifies