Siler City receives a trust donation for the purpose of maintaining flower beds in city parks,but the donor does not specify that the principal must be maintained.This type of trust would be most appropriately accounted for in a:

Question

Quizplus · Accepted Answer

This type of trust, where the donor does not specify that the principal must be maintained, would typically be accounted for in a Special Revenue Fund. This is because the trust is intended for a specific purpose (maintaining flower beds in city parks), and the funds can only be used for that purpose. A Special Revenue Fund is used for the accounting of specific revenue sources that are restricted or earmarked for particular purposes.

Siler City Receives a Trust Donation for the Purpose of Maintaining