The Dillard Park Fund is used to account for a private donation by Mr.and Mrs.Bud Dillard.When making the donation,the Dillard's stipulated that only the income from this fund could be used for the operations of Dillard Park,a city owned park.The Dillard Park Fund is a:
A)General Fund
B)Special Revenue Fund
C)Permanent Fund
D)Private-Purpose Trust Fund

Question

Quizplus · Accepted Answer

The Dillard Park Fund is a Permanent Fund because it involves a situation where the principal (or corpus) of the fund is to remain intact in perpetuity, and only the income generated from the fund can be used for a specific public purpose, in this case, the operations of Dillard Park. Permanent funds are used by governments to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs—that is, for the benefit of the government or its citizenry.

The Dillard Park Fund Is Used to Account for a Private