Question

Regarding Special revenue funds, which of the following is TRUE?

a. Special revenue funds are used when it is desirable to provide separate reporting of resources that are designated for specific purposes
b. Special revenue funds may be used for any designated purpose to segregate revenues and ensure compliance with restrictions
c. Special revenue funds are used when it is desirable to provide separate reporting for funds provided by other governments to support capital projects
d. Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed as to expenditure for purposes other than debt service or capital projects.
e. None of these

Answer 1

d. Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed as to expenditure for purposes other than debt service or capital projects.

Step-by-step explanation:

Special revenue funds are funds that are collected in certain taxes and that are separated from the whole budget of the government because those taxes collected have a specific goal, they are used to hold politicians accountable for what they do with the money and are very important because they are there for specific reasons. For example the special collection of taxes to build a new public library or a new park.