Question 1

Each of the following are reported as fiduciary funds except:

Accepted Answer

A)  A permanent fund. 
B)  An investment trust fund. 
C)  An custodial fund. 
D)  A private-purpose trust fund. 
A)  A permanent fund. 
B)  An investment trust fund. 
C)  An custodial fund. 
D)  A private-purpose trust fund.

Question 2

Which of the following types of risk is related to the financial ability and dependability of the issuer of debt securities?

Accepted Answer

A)  Custodial risk. 
B)  Concentration risk. 
C)  Solvency risk. 
D)  Credit risk. 
A)  Custodial risk. 
B)  Concentration risk. 
C)  Solvency risk. 
D)  Credit risk.

Question 3

On the statement of changes in net position, custodial funds need to display on separate lines each type of addition made to the fund.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the appropriate basis of accounting for a custodial fund?

Accepted Answer

A)  Cash basis. 
B)  Modified cash basis. 
C)  Accrual basis. 
D)  Modified accrual basis. 
A)  Cash basis. 
B)  Modified cash basis. 
C)  Accrual basis. 
D)  Modified accrual basis.

Question 5

If a city has a responsibility for endowed resources, how would city management decide whether to account for the resources in a permanent fund or a trust fund? How does financial reporting of the funds differ?

Accepted Answer

If resources entrusted to a government a

Question 6

When one participant in an investment pool withdraws part of its equity from the pool, that participant's proportionate interest is decreased and all other participants' proportionate interest is increased.

Accepted Answer

A) True 
 B)False

Question 7

A common example of a private-purpose trust fund is a state-sponsored 529 savings plan, structured such that parents make after-tax contributions to an investment fund managed by the state government.

Accepted Answer

A) True 
 B)False

Question 8

In financial reporting for proprietary funds and at the government-wide level, the employer's pension expense for the period is equal to:

Accepted Answer

A)  The employer's contribution. 
B)  Annual required contribution. 
C)  Current year benefits, interest on prior pension liabilities, plan changes, amortization of deferred amounts, and other changes to the net pension liability. 
D)  All of these are correct. 
A)  The employer's contribution. 
B)  Annual required contribution. 
C)  Current year benefits, interest on prior pension liabilities, plan changes, amortization of deferred amounts, and other changes to the net pension liability. 
D)  All of these are correct.

Question 9

Resources that are held in trust for the benefit of the government's own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

Accepted Answer

A) True 
 B)False

Question 10

A donor contributed $500,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the a band shell in the city's park. The $500,000 would most appropriately be recorded in a(an):

Accepted Answer

A)  Custodial fund. 
B)  Private-purpose trust fund. 
C)  Endowment fund. 
D)  Permanent fund. 
A)  Custodial fund. 
B)  Private-purpose trust fund. 
C)  Endowment fund. 
D)  Permanent fund.

Question 11

Briefly explain the difference between a custodial fund and a trust fund.

Accepted Answer

Before a fund can be considered either a

Question 12

A government needs to establish an investment policy for its investment trust fund to ensure compliance with the GASB standards.

Accepted Answer

A) True 
 B)False

Each of the following are reported as fiduciary funds except:

Which of the following types of risk is related to the financial ability and dependability of the issuer of debt securities?

On the statement of changes in net position, custodial funds need to display on separate lines each type of addition made to the fund.

Which of the following is the appropriate basis of accounting for a custodial fund?

If a city has a responsibility for endowed resources, how would city management decide whether to account for the resources in a permanent fund or a trust fund? How does financial reporting of the funds differ?

When one participant in an investment pool withdraws part of its equity from the pool, that participant's proportionate interest is decreased and all other participants' proportionate interest is increased.

A common example of a private-purpose trust fund is a state-sponsored 529 savings plan, structured such that parents make after-tax contributions to an investment fund managed by the state government.

In financial reporting for proprietary funds and at the government-wide level, the employer's pension expense for the period is equal to:

Resources that are held in trust for the benefit of the government's own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

A donor contributed $500,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the a band shell in the city's park. The $500,000 would most appropriately be recorded in a(an):

Briefly explain the difference between a custodial fund and a trust fund.

A government needs to establish an investment policy for its investment trust fund to ensure compliance with the GASB standards.

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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Exam 8: Accounting for Fiduciary Activities—Custodial and Trust Funds

Each of the following are reported as fiduciary funds except:

Which of the following types of risk is related to the financial ability and dependability of the issuer of debt securities?

On the statement of changes in net position, custodial funds need to display on separate lines each type of addition made to the fund.

Which of the following is the appropriate basis of accounting for a custodial fund?

If a city has a responsibility for endowed resources, how would city management decide whether to account for the resources in a permanent fund or a trust fund? How does financial reporting of the funds differ?

When one participant in an investment pool withdraws part of its equity from the pool, that participant's proportionate interest is decreased and all other participants' proportionate interest is increased.

A common example of a private-purpose trust fund is a state-sponsored 529 savings plan, structured such that parents make after-tax contributions to an investment fund managed by the state government.

In financial reporting for proprietary funds and at the government-wide level, the employer's pension expense for the period is equal to:

Resources that are held in trust for the benefit of the government's own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

A donor contributed $500,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the a band shell in the city's park. The $500,000 would most appropriately be recorded in a(an):

Briefly explain the difference between a custodial fund and a trust fund.

A government needs to establish an investment policy for its investment trust fund to ensure compliance with the GASB standards.

Introduction to Accounting and Financial Reporting for Government and Not-for-Profit Entities

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts; Budgetary Accounting

Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for the Business-type Activities of State and Local Governments

Financial Reporting of State and Local Governments

Analysis of Government Financial Performance

Auditing of Government and Not-for-Profit Organizations

Budgeting and Performance Measurement

Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues

Accounting for Not-for-Profit Organizations

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters