Exam 8: Accounting for Fiduciary Activities-Agency and Trust Funds

Which of these fiduciary fund types always has zero net position?

Effective management of cash and investments of individual funds may be enhanced by placing the cash and investments in a pool under the control of the treasurer of the government or other official.

When a cash and investment pool is created,the assets of each fund entering the pool should be transferred to the pool at their fair value at the date of the transfer.

If a city has a fiduciary responsibility for assets entrusted to it,describe the factors that the city would consider in deciding whether to account for the assets in an agency fund or a trust fund.

If special assessment receivables are recorded in the accounts of an agency fund,the appropriate account(s)to credit is(are):

A statement of cash flows should be prepared for which of the following fiduciary fund types?

Which of the following is a valid reason for establishing a tax agency fund and charging a collection fee to other governments?

Fiduciary funds are accounted for in a manner similar to which of the following funds?

Kirby County established a tax agency fund to collect property taxes for the City of Kix,the City of Denton,and Kirby County School District.Total tax levies of the three governmental units were $200,000 for the year,of which $60,000 was for the City of Kix,$40,000 for Denton,and $100,000 for the School District.The tax agency fund charges a 2% collection fee that it transfers to the general fund of the County in order to cover costs incurred for agency fund operations.During the year the tax agency fund collected and remitted $150,000 of the $200,000 levies to the various governmental units.Collection fees associated with the $150,000 were remitted to Kirby County's general fund prior to year end. Required Prepare the journal entries to record tax collections and remittances for the Kirby County Tax Agency Fund.

Billing and collection of special assessments and payment of debt principal and interest on special assessment debt for which the city is not obligated in any manner should be recorded in a(an):

Trust funds often exist over a longer period of time than agency funds,represent and develop vested interests of a beneficiary to a greater extent,and involve more complex administration and financial accounting and reporting.

A donor contributed $100,000 to the city stipulating that the money be invested and that the earnings thereon be used for maintenance of the city municipal swimming pool.The $100,000 would most appropriately be recorded in a(an)

Public Employee Retirement Systems should utilize the modified accrual basis of accounting.

In which of the following circumstances would it be inappropriate to report the assets in the fiduciary fund financial statements?

If a state or local government is a party to an agency relationship,it must automatically create an agency fund in order to be in conformity with generally accepted accounting principles.

Public employee retirement systems should label the difference between assets and liabilities on the statement of plan net position as "fund balance available for member benefits."

Which of the following activities would be accounted for by a trust fund?

Which of the following is not a fiduciary fund?

Each of the following are reported as fiduciary funds except

Which of the following grants received by a city would most appropriately be recorded in a "pass-through" agency fund?