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In a previous year, Yazoo City had received a $400,000 gift of cash and investments. The...

In a previous year, Yazoo City had received a $400,000 gift of cash and investments. The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. During the current year, the earnings from this gift were $24,000. The earnings from this gift should generally be considered revenue to which of the following fundsIn a previous year, Yazoo City had received a $400,000 gift of cash and investments. The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. During the current year, the earnings from this gift were $24,000. The earnings from this gift should generally be considered revenue to which of the following funds

Special revenue fund.

Private-purpose trust fund.

Agency Fund

Permanent Fund

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Answer #1

Answer-The correct option will be d-Permanent Fund

A permanent fund is a fund where the principal fund may not be used and only earnings on the fund are used for the benefit of the government or its citizens.As in this case The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested so generally the earnings from this gift should be considered revenue in Permanent Fund.

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