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What Is the Distinction Between Private Purpose Trust Funds and Permanent

Question 22

Multiple Choice

What is the distinction between Private Purpose Trust Funds and Permanent Funds?


A) Private Purpose Trust Funds account on the modified accrual basis;Permanent Funds account on the full accrual basis
B) The beneficiaries of Private Purpose Trust Funds are "outside" the government;the beneficiaries of Permanent Funds are the reporting government or its citizenry
C) Private Purpose Trust Funds are governmental fund types;Permanent Funds are fiduciary fund types
D) Investments of Private Purpose Trust Funds are valued at cost;investments of Permanent Funds are valued at fair value

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