Question

Name the funds which are invested in securities and the income earned on such investments is added to the respective fund and not credited to the Income and Expenditure Account.

Options

• Endowment Fund

• Special Funds

• Payment of Honorarium

• None of these

Answer 1

Special Funds

Explanation:

The office of Not-for-Profit Organizations develops special funds for certain purposes/activities, such as "prize funds," "match funds," and "sports funds," among others. The revenue earned on these investments is added to the respective fund, rather than being credited to the Income and Expenditure Account, as is the case with other funds. Expenses incurred for such specified purposes are similarly taken from the special fund.