Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

-What type of fund should be used to account for the gift of bonds and the interest income?

Question

Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

-What type of fund should be used to account for the gift of bonds and the interest income?

Quizplus · Accepted Answer

A Permanent Fund is used to account for situations where the principal amount is to remain intact indefinitely, but the interest income can be used for specific purposes, such as the maintenance of zoo animals in this scenario.

Use the Following Information to Answer the Question(s) Below