A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal)may be used for its provided purpose should be reported in a:

Question

Quizplus · Accepted Answer

A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal) may be used for its provided purpose should be reported in a Permanent Fund. This is because the principal of the trust cannot be spent and is therefore, reported as a non-spendable fund balance. Only the earnings made on the principal can be spent, hence, they are reported as revenue in the Permanent Fund. This type of fund is typically used for long-term investments or for purposes such as supporting education or funding research. Special Revenue Funds are used to account for specific revenue streams that are legally restricted for a specific purpose, and Private-purpose Trust Funds are used to account for trust funds that benefit specific individuals or organizations, not the government or its citizens.

A Non-Expendable Trust Which Benefits a Government or Its Citizenry