Trust funds in the federal government are used to account for assets held in a fiduciary capacity for specific purposes. These funds typically involve revenue dedicated by law for particular programs and purposes, such as:
Social Security Trust Fund
Medicare Trust Fund
Unemployment Trust Fund
These involve collections from earmarked taxes or contributions and are used to provide specific benefits or services.
Relevant References:
FASAB SFFAS No. 27 – Identifying and Reporting Earmarked Funds
Treasury Financial Manual – Trust Fund Accounts
OMB Circular A-11, Section 20 – Federal Fund and Trust Fund Definitions
Answer: B. provisions of benefits, goods or services financed by specific revenue sources
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