If the government expects that a substantial portion of the resources supporting a special revenue fund’s activities will no longer be derived from restricted and committed revenue sources, the government should discontinue the use of a special revenue fund and report the fund’s remaining resources in the general fund.

If the government expects that a substantial portion of the resources supporting a special revenue fund’s activities will no longer be derived from restricted and committed revenue sources, the government should discontinue the use of a special revenue fund discontinue the use of a special revenue fund and report the fund’s remaining resources in the General Fund.

Explanation:

A special revenue fund is an economic device created by the federal government to raise money-generating taxes for a specific project that should bring some improvement to citizens. This type of fund requires a great deal of honesty and transparency from the government, because it must be proved that the money given by investors is being used for the specific project, if by chance the money raised by the special income fund is being diverted to another project, the Government should cut the supply of special revenue fund immediately.

For this reason, we can say that if the government expects that a substantial portion of the resources that support the activities of a special revenue fund will no longer be derived from restricted and committed revenue sources, the government should discontinue use of a revenue fund. discontinue use of a special income fund and report the fund's remaining resources to the General Fund.

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