Exam 10: Fiduciary Funds and Permanent Funds

Citizens within a defined geographic area of Dolan City created a special assessment district to facilitate the construction of sidewalks.The city was responsible for overseeing the entire construction project.The city issued bonds in its own name to pay the contractor for the construction.However,the city was not responsible in any manner for the bonds.The bonds were secured by the special assessments that are levied against properties within the special assessment district.Collections of special assessments would be recorded in which of the following funds of Dolan City?

Which of the following is NOT a fiduciary fund?

The $20,000 transfer would be reported by the fund that made the transfer as a an)

In contrast to most private-sector pension plans,most government plans are defined contribution plans.

A defined contribution pension plan is one in which the employer agrees to do which of the following?

In an agency fund,assets always equal fund balances because there are no liabilities.

The liabilities related to benefits and refunds of a defined benefit pension plan are reported in a government's fiduciary fund financial statements using the Full Accrual Modified Economic Resources Current Financial Resources Measure- ment Focus a) No Yes Yes No b) Yes No No Yes c) No Yes No Yes d) Yes No Yes No

Not-for-profits report all investment gains and losses on endowments as additions to temporarily restricted net assets,regardless of donor-imposed restrictions.

In which of the following funds would the account "net pension obligation" be most likely to appear?

Several years ago,a donor gave $5 million to Denton City and specified that the principal was to be kept intact but the earnings were to be used to support the operations of city parks.During the current year,the city earned $300,000 on the gift.To what type of fund,should the city transfer the $300,000 earnings?

At the beginning of the year,the permanent fund of Rose City had an investment portfolio with a historical cost of $300,000 and a fair value of $330,000.There were no purchases or sales of securities during the year.At the end of the year the portfolio had a fair value of $360,000.At year-end, the city s account for this increase in fair value in which of the following ways?

Fiduciary funds are excluded from the government-wide financial statements.

Liabilities reported in pension trust funds consist of

A major difference between defined benefit pension plans and defined contribution pension plans is that

Per GASB Statement No.34,permanent funds are classified as fiduciary funds.

What basis of accounting is used to account for transactions of a government's private-purpose trust fund?

Ashby City receives a federal grant to assist in nutrition programs for its senior citizens.Senior citizens whose income is below a specified amount the amount was specified by the Federal government)are eligible to participate in the program.Monthly checks of $100 this amount was specified by the Federal government)will be mailed to eligible senior citizens.The proceeds of this grant should be accounted for in which of the following funds of the city?

Financial assets reported by qqqqqqqqqqqqq2a7-like investment pools should be reported at

Employers that provide postemployment healthcare benefit plans should account for them in private-purpose trust funds.

GASB standards require a defined benefit pension plan to report investments at fair market value even if the plan's actuary uses a different value in determining the employer's contribution requirements.