Final answer:
Investment trust funds and pension trust funds are not accounted for like permanent funds due to their different structures and objectives. Pension funds provide guaranteed retirement benefits, while defined contribution plans like 401(k)s and 403(b)s offer portable and inflation-adjusted returns.
Step-by-step explanation:
The statement that investment trust funds and pension trust funds should be accounted for in the same manner as permanent funds is false. While both types of funds are used to account for resources held in trust for individuals, pension funds and investment trusts have different objectives and legal structures. Pension trust funds (e.g., defined benefit plans) provide employees with guaranteed benefits upon retirement and require actuarial considerations in their accounting. On the other hand, permanent funds are typically governmental fund types designed to yield interest income for public purposes. In contrast, investment trust funds pool investments and offer more flexibility, as seen in defined contribution plans like 401(k)s and 403(b)s, where the employer contributes a fixed amount to the retirement account, and the employee may as well. These defined contribution plans are tax deferred, portable, and their returns keep up with inflation, unlike traditional pension plans.