With Respect to Permanent Funds,which of the Following Is Not

question 111

Multiple Choice

With respect to Permanent Funds,which of the following is not true?

• A) The principal is classified as Nonspendable Fund balance
• B) Permanent Funds are created when resources are provided by private donation.
• C) Permanent Funds use the current financial resources measurement focus.
• D) Earnings in excess of expenditures must be added to principal corpus.

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Definitions:

Financial Reports

Documents that present an organization's financial performance and position, typically including balance sheets, income statements, and cash flow statements.

Compliance

Refers to the act of following and adhering to rules, regulations, standards, or laws.

Voucher

Any document that serves as proof of authority to pay cash or issue an electronic funds transfer, but for many businesses is a special form used to record data about a liability and the details of its payment.

Cash Payment

A financial transaction involving the outflow of cash from one party to another as a form of payment.