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

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Definitions:

Humility

The quality of having a modest or low view of one's importance, often leading to a respectful and considerate behavior towards others.

Scientific Attitude

A mindset characterized by curiosity, skepticism, and humility, alongside the methodical pursuit of knowledge.

Optimistic Outlook

The tendency to maintain a positive attitude and expect good outcomes even in face of difficulties.

Empirical Approach

A method of inquiry that relies on direct and indirect observation or experience, as well as empirical evidence, to gain knowledge, often used in scientific research to test hypotheses and theories.