Which of the following is a typical revenue source for a special revenue fund?

Master the Becker CPA FAR Exam with flashcards and multiple choice questions. Each question is accompanied by hints and detailed explanations to aid your study. Get ready to ace your exam!

A special revenue fund is used to account for specific revenue sources that are restricted or designated for particular purposes. Designated federal grants are indeed a typical revenue source for a special revenue fund, as they are often allocated for specific programs or services, adhering to the special revenue fund's purpose of tracking and managing revenues that must be used for designated areas of spending.

While property taxes can be a revenue source for various governmental funds, they are generally associated with the general fund unless specifically earmarked for a special purpose, which is not typically the case with special revenue funds. General fund transfers refer to money that may be moved from the general fund to other funds but are not a revenue source of the special revenue fund itself. Interest income from investments can contribute to various funds, but it does not specifically belong to the typical revenue sources associated with special revenue funds, as it is often more common in the context of general fund activities.

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