A state legislature enacts a new park entrance fee that may be used only for adding to and maintaining the collection of tropical plants in that state's nationally famous Prospect Park.Which type of fund should be used to account for those resources?

Question

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A Special Revenue Fund is used to account for revenue from specific sources that are legally restricted to certain purposes. In this case, the new park entrance fee is restricted to adding to and maintaining the collection of tropical plants in Prospect Park, making it an appropriate source of revenue for a Special Revenue Fund. The General Fund is used to account for the day-to-day operations of the government, not for specific programs or projects. An Internal Service Fund is used to account for activities that provide goods or services to other government departments, which is not the case in this scenario. An Agency Fund is used to account for resources held by a government as a trustee, agent, or custodian, which does not apply in this scenario either.

A State Legislature Enacts a New Park Entrance Fee That