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

Question

Quizplus · Accepted Answer

A permanent fund is a fund where the principal amount donated is invested and the earnings are used for a specific purpose. In this case, the gift of $500,000 is to be invested permanently, and the proceeds are to be used to maintain the city cemetery, which is a specific purpose. Therefore, this would be accounted for as a permanent fund. Option B, on the other hand, mentions that the proceeds are to be distributed as scholarships, which is not a specific purpose. Option C mentions that the grant is for low income housing, which is a general purpose and not a specific purpose. Option D mentions that the gift is to be used for a new caretaker's residence, which is not a specific purpose.

Which of the Following Would Be Accounted for as a Permanent