Permanent Funds Account for Resources That Are Donor Restricted to the Extent

question 63

True/False

Permanent funds account for resources that are donor restricted to the extent earnings but not principal may be used to support government programs.

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Definitions:

Quarterly Deposits

Deposits made into an account or investment vehicle at regular intervals every three months within a year.

Bank Account

A financial account maintained by a bank or other financial institution in which the financial transactions between the customer and the bank are recorded.

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Pay Today

An immediate payment requirement, often referring to the upfront cost or investment needed in a transaction or financial deal.