Which of the Following Statement Is True Regarding Permanent Funds

question 43

Multiple Choice

Which of the following statement is true regarding permanent funds?

• A)Permanent funds do not have any donor restrictions when they are established.
• B)Permanent funds have a donor restriction on the fund principal but the income from the fund may be used to benefit the government's program.
• C)Permanent funds have a donor restriction on the income generated from the fund principal but the principal may be used to benefit the government's program.
• D)The cash or accrual basis of accounting may be used to account for a permanent fund.