Use the Following Information to Answer the Question(s) Below

question 5

Multiple Choice

Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

-What type of fund should be used to account for the gift of bonds and the interest income?

• A)General Fund
• B)Special Revenue Fund
• C)Proprietary Fund
• D)Permanent Fund