Accounting Questions
Accounting Questions California State University Northridge Accounting 475 Spring 2022 Homework 1 Question 9
9. Which of the following funds of a governmental unit uses the same basis of accounting as the special revenue fund.
A. Enterprise fund
B. Internal service funds
C. Private purpose trust fund.
D. Permanent fund.
Answer
D. Permanent Fund.
Explanation.
The permanent fund uses the same basis of accounting as the special revenue funds. Both the permanent fund and the special revenue fund are governmental funds (GRaSPP), that use modified accrual accounting (revenues are recorded when measurable and available).