The Earnings on the Assets of a Permanent Fund Are

question 48

Multiple Choice

The earnings on the assets of a permanent fund are to be used to support the city's library (special revenue fund) . How would the earnings be recorded?

• A) Revenues by the permanent fund.
• B) Revenues by the library.
• C) Revenues by both the permanent fund and the library.
• D) Other financing source by the permanent fund.

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Definitions:

Government-sponsored Businesses

Enterprises that are initiated and sometimes funded by the government but are operated under private ownership or public-private partnership.

Public Utilities

Essential services provided by both government and private sectors including water, electricity, and transportation.

Efficiency Loss

The cost to society created by market inefficiency, often associated with the misallocation of resources or markets not reaching equilibrium.

Excise Tax

is a tax levied on the sale of specific goods or services, like fuel, tobacco, and alcohol, usually to discourage their use or generate revenue.