Question 1

What is a defined benefit pension plan?

Accepted Answer

The term to describe a pension

Question 2

The Accrual Basis and Economic Resource Focus are used for Private-Purpose,Investment Trust and Pension Funds.

Accepted Answer

A) True 
 B)False

Question 3

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 has been formed.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true regarding the reporting of investments by state and local governmental units?

Accepted Answer

A)  Investments, for which a determinable fair value can be obtained, are to be reported at fair value. 
B)  Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Assets). 
C)  Both of the above. 
D)  Neither of the above. 
A)  Investments, for which a determinable fair value can be obtained, are to be reported at fair value. 
B)  Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Assets). 
C)  Both of the above. 
D)  Neither of the above.

Question 5

If a government is liable for payment of special assessment debt in the event of default by the property owners,then an agency fund must be used.

Accepted Answer

A) True 
 B)False

Question 6

Investment pools invested from external parties are recorded in Investment Trust Funds.

Accepted Answer

A) True 
 B)False

Question 7

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked.What type of pension plan does the employee have?

Accepted Answer

A)  Defined Contribution Plan. 
B)  Normal Payout Plan. 
C)  Defined Benefit Plan. 
D)  None of the above. 
A)  Defined Contribution Plan. 
B)  Normal Payout Plan. 
C)  Defined Benefit Plan. 
D)  None of the above.

Question 8

Pension trust funds are required to present a Schedule of Funding Progress and a Schedule of Employer Contributions as required supplementary information.

Accepted Answer

A) True 
 B)False

Question 9

Defined contribution plans usually report unfunded actuarial liabilities.

Accepted Answer

A) True 
 B)False

Question 10

A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):

Accepted Answer

A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund 
A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund

Question 11

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 12

Agency fund assets and liabilities are to be recognized:

Accepted Answer

A)  At the time the government becomes responsible for the assets. 
B)  When they are available and measurable. 
C)  Only in the government-wide financial statements. 
D)  None of the above. 
A)  At the time the government becomes responsible for the assets. 
B)  When they are available and measurable. 
C)  Only in the government-wide financial statements. 
D)  None of the above.

Question 13

Which of the following is not an example of the function of an Agency Fund?

Accepted Answer

A)  Payment of interest and principle on long-term debt. 
B)  Collection of local government sales taxes by the state government. 
C)  Collection of property taxes for the school district collected by an elected county official. 
D)  Periodic distribution by state government of county gasoline taxes. 
A)  Payment of interest and principle on long-term debt. 
B)  Collection of local government sales taxes by the state government. 
C)  Collection of property taxes for the school district collected by an elected county official. 
D)  Periodic distribution by state government of county gasoline taxes.

Question 14

Private-purpose trust funds account for donated resources that benefit the general citizenry.

Accepted Answer

A) True 
 B)False

Question 15

Ford County levies for its General Fund $2,000,000 in property taxes.In addition,the county is responsible for collecting $4,000,000 in property taxes for the consolidated school district and $1,000,000 in property taxes for a town within the county.2% of all taxes levied are expected to be uncollectible.When recording the levies in an agency fund,what amount would Ford County record as Taxes Receivable for Other Governments - Current and Due to Other Governments?

Accepted Answer

A)  $6,900,000. 
B)  $5,000,000. 
C)  $7,000,000. 
D)  $4,900,000. 
A)  $6,900,000. 
B)  $5,000,000. 
C)  $7,000,000. 
D)  $4,900,000.

Question 16

A statewide pension plan exists for all local governments in a certain state.The provisions of the plan indicate that each qualifying retiree receive 2% multiplied by the number of years active employment multiplied by the average salary for the past four years of service.The government calculates the actuarial liability on a statewide basis,not by individual government.The plan would be known as a:

Accepted Answer

A)  Multiple-employer, defined benefit, agency plan. 
B)  Multiple-employer, defined contribution plan. 
C)  Multiple-employer, defined benefit, cost-sharing plan. 
D)  Single employer plan. 
A)  Multiple-employer, defined benefit, agency plan. 
B)  Multiple-employer, defined contribution plan. 
C)  Multiple-employer, defined benefit, cost-sharing plan. 
D)  Single employer plan.

Question 17

Investment Trust Funds account for the external portion of investment pools.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds use the financial 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 financial 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 19

Churchville County is trustee for a multi-government investment pool and has established an investment trust fund.Included in the investment trust fund,for management purposes,are investments in the amount of $15 million from the County's General Fund,$3 million from the County's special revenue funds,and $112 million from other governments.Which of the following would be true?

Accepted Answer

A)  The County would report $18 million in an investment trust fund. 
B)  The County would report the entire $130 million in an investment trust fund. 
C)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund, and the $3 million in special revenue funds. 
D)  The County would report the $112 million in an investment trust fund the and $18 million in a permanent fund. 
A)  The County would report $18 million in an investment trust fund. 
B)  The County would report the entire $130 million in an investment trust fund. 
C)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund, and the $3 million in special revenue funds. 
D)  The County would report the $112 million in an investment trust fund the and $18 million in a permanent fund.

Question 20

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.

What is a defined benefit pension plan?

The Accrual Basis and Economic Resource Focus are used for Private-Purpose,Investment Trust and Pension Funds.

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 has been formed.

Which of the following is true regarding the reporting of investments by state and local governmental units?

If a government is liable for payment of special assessment debt in the event of default by the property owners,then an agency fund must be used.

Investment pools invested from external parties are recorded in Investment Trust Funds.

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked.What type of pension plan does the employee have?

Pension trust funds are required to present a Schedule of Funding Progress and a Schedule of Employer Contributions as required supplementary information.

Defined contribution plans usually report unfunded actuarial liabilities.

A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):

Agency fund assets and liabilities are to be recognized:

Which of the following is not an example of the function of an Agency Fund?

Private-purpose trust funds account for donated resources that benefit the general citizenry.

Investment Trust Funds account for the external portion of investment pools.

Which of the following is true regarding fiduciary funds?

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

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

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

What is a defined benefit pension plan?

The Accrual Basis and Economic Resource Focus are used for Private-Purpose,Investment Trust and Pension Funds.

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 has been formed.

Which of the following is true regarding the reporting of investments by state and local governmental units?

If a government is liable for payment of special assessment debt in the event of default by the property owners,then an agency fund must be used.

Investment pools invested from external parties are recorded in Investment Trust Funds.

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked.What type of pension plan does the employee have?

Pension trust funds are required to present a Schedule of Funding Progress and a Schedule of Employer Contributions as required supplementary information.

Defined contribution plans usually report unfunded actuarial liabilities.

A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):

Agency fund assets and liabilities are to be recognized:

Which of the following is not an example of the function of an Agency Fund?

Private-purpose trust funds account for donated resources that benefit the general citizenry.

Investment Trust Funds account for the external portion of investment pools.

Which of the following is true regarding fiduciary funds?

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

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters