Question

Write one Word / Term / Phrase for each of the following statement.

A fund created out of a specific amount earmarked, gifted, or donated and the income of this fund is to be used for a specific purpose.

Answer 1

Endowment Fund

Explanation: Endowment fund is basically the fund generated via gifts and bequests. The income from such funds is usually allocated for some specific purpose. It is a capital receipt because it provides a permanent income to the organisation and is shown on the Liabilities side as a separate item.