A common use of special revenue funds is to account for intergovernmental grants when federal or state governments provide resources to local governments.

Question

Quizplus · Accepted Answer

This statement is true. Special revenue funds are often used to track and manage resources received from intergovernmental grants, which are provided by higher levels of government to support specific programs or initiatives at the local level. These funds are separate from general revenue funds and are designated for a specific purpose.

A Common Use of Special Revenue Funds Is to Account