A City Received a Grant of $5,000,000 from a Private

question 63

Multiple Choice

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

• A) The General Fund.
• B) An Expendable Trust Fund.
• C) A Capital Projects Fund.
• D) An Agency Fund.
• E) A Permanent Fund.

---

Definitions:

Service Company

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Flexible Budget

An elastic budget that varies according to fluctuations in volume or operational activities.

Revenue

The total income generated by the sale of goods or services before any expenses are deducted.

Shipping Container

A large container designed for transport and storage of goods by various modes of transportation, including ship, rail, and truck.