Which classification would include resources allocated for public benefit derived from trust agreements?

Enhance your skills for the CGFM Exam 2 in Governmental Accounting, Financial Reporting, and Budgeting. Our resourceful quiz offers essential questions with comprehensive explanations. Prepare with confidence and excel in your certification!

The classification that includes resources allocated for public benefit derived from trust agreements is permanent funds.

Permanent funds are specifically intended to support the public benefit while ensuring that the principal remains intact. The earnings generated from these funds are typically used for public purposes, such as funding parks, education, or other community services. This aligns well with the purpose of trust agreements, which often specify how resources should be used to benefit the community without depleting the principal.

On the other hand, debt service funds are earmarked for the repayment of debt obligations, which does not directly pertain to public benefit derived from trust agreements. General funds are used for a broader range of governmental expenditures but do not specifically relate to funds established through trust agreements for public benefit. Capital projects funds are designated for the acquisition or construction of capital assets, rather than for ongoing public benefit contributions.

Thus, given the unique nature of permanent funds in relation to trust agreements and public benefit, it is the correct classification in this scenario.

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