1.) A government establishes an Investment Trust Fund. During the year, it receives $500,000 from other separate legal entities to invest. The Investment Trust Fund should report this activity in the statement of changes in net assets as

Select one:

a. Revenues

b. Other financing sources

c. Additions

d. Should not be reported

2.) A government receives a bequest of $300,000 to establish an endowment fund whose income is to be used to support scholarships for local high school students. The school district is not part of the government. The government should report this activity in which type of fund?

Select one:

a. Permanent Fund

b. Private-purpose Trust Fund

c. Investment Trust Fund

d. Agency Fund