Question

The city of Hannah has established a trust to provide resources to offset the costs of maintenance of the city-owned cemetery. The majority of the resources of this trust will be cemetery plot sales and donations from families of those buried in the cemetery. The trust corpus is nonexpendable in nature. Transactions associated with this trust activity would most likely be accounted for in a. the General Fund. b. a Special Revenue Fund. c. a Private-Purpose Trust Fund. d. a Permanent Fund.

Answer 1

Answer:

D. A permanent Fund

Explanation:

This is a type of financial fund that is used to collect and disburse proceeds to individuals or other entities that are members of the fund on an ongoing basis. They are investment and other resources that government is not allowed to spend or cash in.

In the city of Hannah, the permanent funds are used to offset the costs of maintenance of the city-owned cemetery. Also, majority of the resources of this trust will be cemetery plot sales and donations from families of those buried in the cemetery.