A is corrent. Per GASB Codification Section 1300, special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Therefore, only the $900,000 of sales tax proceeds received to finance the maintenance of tourist facilities in the shopping district would be accounted for in Grove’s special revenue funds. The $300,000 donation to a permanent fund would be accounted for by a separate governmental (permanent) fund.
B is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
C is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
D is incorrect. Special revenue funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
