Which of the Following Statement Is True Regarding Permanent Funds

question 43

Multiple Choice

Which of the following statement is true regarding permanent funds?

• A)Permanent funds do not have any donor restrictions when they are established.
• B)Permanent funds have a donor restriction on the fund principal but the income from the fund may be used to benefit the government's program.
• C)Permanent funds have a donor restriction on the income generated from the fund principal but the principal may be used to benefit the government's program.
• D)The cash or accrual basis of accounting may be used to account for a permanent fund.

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Definitions:

Confirmation Bias

The tendency to interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Stereotype

A common yet rigid and overly simplistic representation or belief about a certain group or object, usually formed from insufficient information.

Fundamental Attribution Error

A common bias in social psychology where people tend to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Confirmation Bias

The habit of scouting for, construing, preferring, and recalling insights in a manner that upholds one's antecedent beliefs or guesses.