A donor contributed $500,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the a band shell in the city's park.The $500,000 would most appropriately be recorded in a(an):

Question

Quizplus · Accepted Answer

A permanent fund is used to account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that benefit the government or its citizens.

A Donor Contributed $500,000 to the City Stipulating That the Money