From the items listed, which amount should be accounted for in a special revenue fund?

From the items listed, which amount should be accounted for in a special revenue fund?

• A. $1,800,000
• B. $300,000
• C. $1,500,000
• D. $1,750,000

Answer: (A)

Special revenue funds are used for resources that are restricted by law, regulation, or external agreement to be used for a specific purpose other than capital projects or debt service. The amount that represents restricted funding for a particular program should be put in a special revenue fund. In this case, the 1,800,000 reflects funds tied to a defined program or activity, so it belongs in a special revenue fund rather than the general fund or other funds. The other amounts would typically be assigned to other fund types that match their more general or different-use nature.

Special revenue funds are used for resources that are restricted by law, regulation, or external agreement to be used for a specific purpose other than capital projects or debt service. The amount that represents restricted funding for a particular program should be put in a special revenue fund. In this case, the 1,800,000 reflects funds tied to a defined program or activity, so it belongs in a special revenue fund rather than the general fund or other funds. The other amounts would typically be assigned to other fund types that match their more general or different-use nature.