The County Received a $10,000,000 Endowment, the Terms of Which

question 23

Multiple Choice

The county received a $10,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide medical services to low-income children. Where would the $10,000,000 be recorded?

• A) Special revenue fund.
• B) Permanent fund.
• C) Private-purpose trust fund.
• D) Public-purpose trust fund.

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Definitions:

Corporate Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Stock Repurchase

A stock repurchase is a program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Tax Liability

The total amount of tax owed to the government by an individual, organization, or corporation.

Cash Dividend

A distribution of a company's earnings to its shareholders in the form of cash.