Special revenue funds are used if the resources are required to be used to acquire capital assets or for the payment of interest and principal on long-term debt.

Question

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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 If the Resources Are Required