In short
A special revenue fund is a governmental fund for the proceeds of specific revenue sources that are restricted or committed to a specified purpose other than debt service or capital projects, such as a fuel tax used for road maintenance.
Key takeaways
- The restricted or committed revenue should be a substantial part of the fund's inflows.
- It uses the modified accrual basis and the current financial resources focus.
- Major special revenue funds with legally adopted budgets need a budgetary comparison.
Where it's tested
FAR: Governmental Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Governmental funds use which measurement focus and basis of accounting?