Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed to expenditure for purposes other than debt service or capital projects.

Question

Quizplus · Accepted Answer

GASB standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted or committed revenue source. Special revenue funds are not used if resources are required to be used to acquire capital assets or for the payment of interest and principle on long-term debt.

Special Revenue Funds Are Used When It Is Desirable to Provide