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:

Public Company

A company whose shares are traded freely on a stock exchange, subject to regulatory and reporting requirements.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the shares remains the same.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders.

Par Stock

A standard inventory level that a business aims to maintain to ensure adequate supplies are available to meet demand without holding excessive stock.