Question

Complete the following sentence.

______ is a fund arising from a bequest or gift, the income of which is devoted to a specific purpose.

Options

• Endowment Fund

• Special Funds

• Payments of Honorarium

• None of these

Answer 1

Endowment Fund is a fund arising from a bequest or gift, the income of which is devoted to a specific purpose.

Explanation:

Endowment Fund - An endowment fund is a fund created by a bequest or gift, the revenue from which is used to support a specified cause. As a result, it is a capital receipt and is recorded as an item of a specific purpose fund on the Liabilities side of the Balance Sheet.