What type of fund is most likely used to account for the spending of income earned by a Permanent Fund?
A)agency fund
B)private-purpose trust fund
C)enterprise fund
D)special revenue fund

Question

Quizplus · Accepted Answer

The income earned by a Permanent Fund is often used for a specific purpose, such as education, healthcare, or infrastructure. This type of fund is best accounted for using a special revenue fund, which allows for the tracking of revenues and expenditures related to a specific revenue source or type of activity. The other options, such as agency fund, private-purpose trust fund, and enterprise fund, are not typically used for this purpose.

What Type of Fund Is Most Likely Used to Account