Which of the following statement is true regarding permanent funds?

Question

Quizplus · Accepted Answer

Permanent funds have a donor restriction on the fund principal, which means the principal cannot be touched, but the income earned from the fund can be used to benefit the government's program. Option A is incorrect because permanent funds do have donor restrictions, as explained above. Option C is incorrect because it is the reverse of the correct statement, i.e., there is a restriction on the income, but not on the principal. Option D is incorrect because permanent funds are always accounted for on the full accrual basis of accounting.

Which of the Following Statement Is True Regarding Permanent Funds