Question

Which of the following activities would be accounted for by a trust fund?

a. Assets which are used to assist in the preservation of a private residence that is of historical significance to the city.
b. Assets held for special assessment bondholders for which the city has no liability.
c. Deposits held for customers of a city-owned electric utility.
d. Assets passed-through the state government to the local government.

Answer 1

Trust funds are commonly used to manage and protect assets for specific purposes, such as preserving historical properties.

Step-by-step explanation:

A trust fund is a type of financial arrangement in which assets are held by a trustee for the benefit of a specific purpose or beneficiary. In the given options, the activity that would be accounted for by a trust fund is a. Assets which are used to assist in the preservation of a private residence that is of historical significance to the city. Trust funds are commonly used to manage and protect assets for specific purposes, such as preserving historical properties. By establishing a trust fund, the assets designated for the preservation of the private residence can be managed and used for the intended purpose while ensuring their preservation and ongoing maintenance.