[shawnl112]

Stone Corp. donated investments to Pine City and stipulated that the income from the investments be used to acquire art for the city’s museum. Which of the following funds should be used to account for the investments?

a. Permanent fund

b. Endowment fund

c. Special revenue fund

d. Private purpose trust fund

The answer is a.

My question is what’s the difference between Permanent fund and Special revenue fund.

Thank you.

[Nessie]

Permanent fund generally gets its source of funding from the income of some larger (restricted) asset.
Special Revenue fund generally gets its source of funding from tax collection.

AUD - 80
BEC - 84
FAR - 80
REG - 88

Using Becker Self-Study, Final Review and NINJA MCQs
Sat for BEC Dec 6th, 2016 !!!! 84!!!!!

REG Aug 20/15: 88
AUD: Feb 29/16: 80
FAR: Jun 10/16: 80
BEC?

Becker self-study, Becker Final Review & NINJA MCQS

[southern star]

Permanent fund has a permanent balance, any proceeds made off the fund balance can be used for the government's purpose. I can still hear Jeff emphatically saying permanent in ninja audio.

Special revenue accounts for resources that are restricted or committed.

Key to this question is the income from investments language.

[Author]

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