Which of the following would be accounted for as a permanent fund?

Question

Quizplus · Accepted Answer

A permanent fund is a restricted fund that is intended to be held in perpetuity, with only the investment income available for spending. Option B describes a gift that is intended to be invested permanently and the proceeds used for a specific purpose (buying books for the city library), making it a permanent fund. Option A describes a gift intended to be used to address a short-term budget shortfall, which makes it a general fund. Option C describes a gift intended to be invested permanently but the proceeds used for scholarships, which makes it a restricted fund but not a permanent fund. Option D describes a gift to be used for landscaping improvements, which makes it a capital project fund.

Which of the Following Would Be Accounted for as a Permanent