Final answer:
Fiduciary funds are accounted for in a manner similar to Permanent funds.
Step-by-step explanation:
Fiduciary funds refer to a category of funds in accounting and finance that are held by one entity (the fiduciary) for the benefit of another. These funds are often subject to specific legal and contractual obligations, and the fiduciary has a responsibility to manage and use the funds solely for the benefit of the designated beneficiaries. Fiduciary relationships involve a high level of trust and a legal obligation to act in the best interests of those who have entrusted their assets or resources to the fiduciary.
Fiduciary funds are accounted for in a manner similar to Permanent funds.