Revenues that are legally restricted for expenditure on specified operating purposes should be accounted for in special revenue funds, including
A) Endowment where the investment earnings are to be used for public purposes.
B) Pension trust fund revenues.
C) Accumulation of resources for payment of general long-term debt principal and interest.
D) Gasoline taxes to finance road repairs.

Question

Quizplus · Accepted Answer

Gasoline taxes to finance road repairs are specifically designated for a certain purpose and legally restricted for expenditure on that purpose, which makes it appropriate to account for them in a special revenue fund. Endowment funds, pension trust fund revenues, and debt service funds are also separate funds, but they are not legally restricted for expenditure on a specific operating purpose.

Revenues That Are Legally Restricted for Expenditure on Specified Operating