A is corrent. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific current purposes. The capital facilities resource funding would be recorded in a capital projects fund. The resources for creation of a permanent trust would be recorded in a permanent fund. Therefore, $0 will be recorded since neither transaction related to special revenue fund activity. B is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific current purposes. C is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific current purposes. D is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific current purposes.
