Question 1

A ___________ is used when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Accepted Answer

A)  Investment Trust. 
B)  Private-Purpose Trust. 
C)  Pension Trust. 
D)  Employee Benefit Trust. 
A)  Investment Trust. 
B)  Private-Purpose Trust. 
C)  Pension Trust. 
D)  Employee Benefit Trust.

Question 2

The operations of agency funds will be included in which of the following statements?

Accepted Answer

A)  The fiduciary funds Statement of Fiduciary Net Assets 
B)  The Statement of Changes in Fiduciary Net Assets 
C)  The Government-wide Financial Statements 
D)  All of the above 
A)  The fiduciary funds Statement of Fiduciary Net Assets 
B)  The Statement of Changes in Fiduciary Net Assets 
C)  The Government-wide Financial Statements 
D)  All of the above

Question 3

A county treasurer maintains an investment pool in which several different towns in the county hold investments.Where should the towns' investments be recorded?

Accepted Answer

A)  Investment Trust Fund. 
B)  Agency Fund. 
C)  Private-purpose Trust Fund. 
D)  None of the above. 
A)  Investment Trust Fund. 
B)  Agency Fund. 
C)  Private-purpose Trust Fund. 
D)  None of the above.

Question 4

Which is true regarding the basis of accounting for fiduciary funds?

Accepted Answer

A)  All are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
B)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  All are accounted for using the same basis of accounting and measurement focus as governmental funds. 
A)  All are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
B)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  All are accounted for using the same basis of accounting and measurement focus as governmental funds.

Question 5

Fund equity will not be found in…

Accepted Answer

A)  Investment trust funds. 
B)  Pension trust funds. 
C)  Agency funds. 
D)  Private-purpose trust funds. 
A)  Investment trust funds. 
B)  Pension trust funds. 
C)  Agency funds. 
D)  Private-purpose trust funds.

Question 6

Agency fund assets belong to the party or parties for which the government acts as agent.

Accepted Answer

A) True 
 B)False

Question 7

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals,organizations,or other governments,an agency trust fund has been formed.

Accepted Answer

A) True 
 B)False

Question 8

Investments in a private-purpose trust fund should generally be reported at fair market value.

Accepted Answer

A) True 
 B)False

Question 9

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

Accepted Answer

A) True 
 B)False

Question 10

Assets held in trust that are restricted to benefit the citizenry in general or in support of he reporting government's programs would be reported as private purpose trust funds.

Accepted Answer

A) True 
 B)False

Question 11

Agency funds report no revenues,expenses,or fund equity accounts.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds use the economic resources measurement focus and accrual accounting. 
B)  Fiduciary funds include pension (and other employee benefit) trust, investment trust, agency, and permanent funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds use the economic resources measurement focus and accrual accounting. 
B)  Fiduciary funds include pension (and other employee benefit) trust, investment trust, agency, and permanent funds. 
C)  Both of the above. 
D)  Neither of the above.

Question 13

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

Accepted Answer

A) True 
 B)False

Question 14

Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries.In order to reimburse the county for expenditures for administering the Tax Agency Fund,the Tax Agency Fund is to deduct two percent from the collections from the city and school district.The total amount deducted is to be added to the collections for the county and remitted to the County General Fund.You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.

Accepted Answer

The answer of Washington County assumed the responsibility of collecting...

Question 15

James McHughes gave the following to the City of Carnesville in order to establish a private-purpose trust:
O Land - cost,$500,000; fair market value as of the date of the gift,$400,000.
O Securities - cost,$1,600,000; fair market value as of the date of the gift,$1,800,000.
The amount to be recorded as additions for gifts by the private-purpose trust fund would be:

Accepted Answer

A)  $2,000,000. 
B)  $2,100,000. 
C)  $2,200,000. 
D)  $2,300,000. 
A)  $2,000,000. 
B)  $2,100,000. 
C)  $2,200,000. 
D)  $2,300,000.

Question 16

What are the required statements and schedules for a pension trust fund and in what part of the CAFR are the schedules reported?

Accepted Answer

The financial reporting requirements inc

Question 17

Fiduciary Fund activities report in terms of Revenues and Expenses.

Accepted Answer

A) True 
 B)False

Question 18

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula,regardless of the amount contributed to the plan.

Accepted Answer

A) True 
 B)False

Question 19

The City of Sycamore has investments in bonds.These bonds have an amortized cost of $1,996,000.At year end,the financial press reports a market value of $2,002,000 for these bonds.The original cost of the bonds was $1,992,000.The par value at maturity will be $2,000,000.The amount at which the investments would be reported is:

Accepted Answer

A)  $2,002,000 
B)  $2,000,000 
C)  $1,996,000 
D)  $1,992,000 
A)  $2,002,000 
B)  $2,000,000 
C)  $1,996,000 
D)  $1,992,000

Question 20

Agency Funds are not included in the Government-wide Financial Statements because:

Accepted Answer

A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements. 
A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements.

A ___________ is used when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

The operations of agency funds will be included in which of the following statements?

A county treasurer maintains an investment pool in which several different towns in the county hold investments.Where should the towns' investments be recorded?

Which is true regarding the basis of accounting for fiduciary funds?

Fund equity will not be found in…

Agency fund assets belong to the party or parties for which the government acts as agent.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals,organizations,or other governments,an agency trust fund has been formed.

Investments in a private-purpose trust fund should generally be reported at fair market value.

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

Assets held in trust that are restricted to benefit the citizenry in general or in support of he reporting government's programs would be reported as private purpose trust funds.

Agency funds report no revenues,expenses,or fund equity accounts.

Which of the following is true regarding fiduciary funds?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

What are the required statements and schedules for a pension trust fund and in what part of the CAFR are the schedules reported?

Fiduciary Fund activities report in terms of Revenues and Expenses.

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula,regardless of the amount contributed to the plan.

Agency Funds are not included in the Government-wide Financial Statements because:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 7: Fiduciary Trustfunds

A ___________ is used when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

The operations of agency funds will be included in which of the following statements?

A county treasurer maintains an investment pool in which several different towns in the county hold investments.Where should the towns' investments be recorded?

Which is true regarding the basis of accounting for fiduciary funds?

Fund equity will not be found in…

Agency fund assets belong to the party or parties for which the government acts as agent.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals,organizations,or other governments,an agency trust fund has been formed.

Investments in a private-purpose trust fund should generally be reported at fair market value.

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

Assets held in trust that are restricted to benefit the citizenry in general or in support of he reporting government's programs would be reported as private purpose trust funds.

Agency funds report no revenues,expenses,or fund equity accounts.

Which of the following is true regarding fiduciary funds?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

What are the required statements and schedules for a pension trust fund and in what part of the CAFR are the schedules reported?

Fiduciary Fund activities report in terms of Revenues and Expenses.

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula,regardless of the amount contributed to the plan.

Agency Funds are not included in the Government-wide Financial Statements because:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters