Question 1

Other postemployment benefits (OPEB)are not reported by governments since their costs are not fully known until payments are made.

Accepted Answer

A) True 
 B)False

Question 2

Describe the types of pension plans most often found in governmental entities and the differences between them.Do you expect that most governmental employers sponsor a "single-employer plan" or participate in a public employee retirement system (PERS)?

Accepted Answer

There are two main types of pension plan

Question 3

If a state or local government acts as an intermediary between the federal government and beneficiary recipients in processing grant or entitlement resources,those resources should be accounted for in an agency fund.

Accepted Answer

A) True 
 B)False

Question 4

A local civic organization gave the city government $15,000 cash to be used to pay the utility bills of persons whose incomes were below the poverty level.The city should account for the $15,000 gift in

Accepted Answer

A)  An investment trust fund. 
B)  The General Fund. 
C)  A permanent fund. 
D)  Private-purpose trust fund. 
A)  An investment trust fund. 
B)  The General Fund. 
C)  A permanent fund. 
D)  Private-purpose trust fund.

Question 5

Explain the difference between an internal cash and investment pool and an external cash and investment pool and describe some of the differences in accounting treatment between the two.

Accepted Answer

An internal cash and investment pool ref

Question 6

Which of the following statements is true regarding termination benefits?

Accepted Answer

A)  Voluntary termination benefits occur when employers provide an incentive to hasten an employee's voluntary termination of employment,such as a one-time payout. 
B)  Voluntary terminations relate to layoffs or reductions in workforce. 
C)  Employers incur expenses related to voluntary terminations but not to involuntary terminations. 
D)  Expenses related to voluntary terminations may be avoided by hiring replacement employees within 60 days of the terminations. 
A)  Voluntary termination benefits occur when employers provide an incentive to hasten an employee's voluntary termination of employment,such as a one-time payout. 
B)  Voluntary terminations relate to layoffs or reductions in workforce. 
C)  Employers incur expenses related to voluntary terminations but not to involuntary terminations. 
D)  Expenses related to voluntary terminations may be avoided by hiring replacement employees within 60 days of the terminations.

Question 7

Tax agency funds assume liability for gross levies,not for the amounts the levying funds or units expect to collect.

Accepted Answer

A) True 
 B)False

Question 8

An agency fund should be used to account for special assessment billing and collection,and related debt service of special assessment debt,if the government has no responsibility for the debt.

Accepted Answer

A) True 
 B)False

Question 9

All fiduciary funds report transactions between the fund and both internal and external parties.

Accepted Answer

A) True 
 B)False

Question 10

It is common for an agency fund to have relatively small net position balances.

Accepted Answer

A) True 
 B)False

Question 11

Explain the purpose of the account "undistributed change in fair value of investments" used in a cash and investment pool and describe how it should be reported in the government's financial statements.

Accepted Answer

The account "undistributed change in fai

Question 12

Which of the following is the appropriate basis of accounting for an agency 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 13

The financial position of the Policemen's Pension Fund administered by a city should be reported in the city's basic financial statements as a column in the

Accepted Answer

A)  Statement of assets,liabilities,and fund balances. 
B)  Statement of fiduciary net position. 
C)  Balance sheet-governmental funds. 
D)  Government-wide statement of net position. 
A)  Statement of assets,liabilities,and fund balances. 
B)  Statement of fiduciary net position. 
C)  Balance sheet-governmental funds. 
D)  Government-wide statement of net position.

Question 14

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)  Annual pension cost. 
D)  The change in net pension obligation. 
A)  The employer's contribution. 
B)  Annual required contribution. 
C)  Annual pension cost. 
D)  The change in net pension obligation.

Question 15

Explain the purpose of an investment trust fund and describe its accounting treatment.

Accepted Answer

An investment trust fund is a type of in

Question 16

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 17

Investment trust funds and pension trust funds should be accounted for in the same manner as permanent funds.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements regarding the financial reporting of agency funds is not true?

Accepted Answer

A)  Fiduciary activities are reported only in the fiduciary fund financial statements. 
B)  Agency fund financial information is reported in a separate column of the government-wide statement of activities. 
C)  Agency funds are not included in the statement of changes in fiduciary net position. 
D)  GASB standards do not require disclosure of the assets and liabilities of individual agency funds. 
A)  Fiduciary activities are reported only in the fiduciary fund financial statements. 
B)  Agency fund financial information is reported in a separate column of the government-wide statement of activities. 
C)  Agency funds are not included in the statement of changes in fiduciary net position. 
D)  GASB standards do not require disclosure of the assets and liabilities of individual agency funds.

Question 19

Fiduciary funds are sometimes identified in the annual reports of state and local governments as "Trust and Agency Funds."

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the appropriate measurement focus for agency funds?

Accepted Answer

A)  Economic resources. 
B)  Current financial resources. 
C)  Cash and cash equivalents. 
D)  Accrual basis. 
A)  Economic resources. 
B)  Current financial resources. 
C)  Cash and cash equivalents. 
D)  Accrual basis.

Other postemployment benefits (OPEB)are not reported by governments since their costs are not fully known until payments are made.

Describe the types of pension plans most often found in governmental entities and the differences between them.Do you expect that most governmental employers sponsor a "single-employer plan" or participate in a public employee retirement system (PERS)?

If a state or local government acts as an intermediary between the federal government and beneficiary recipients in processing grant or entitlement resources,those resources should be accounted for in an agency fund.

A local civic organization gave the city government $15,000 cash to be used to pay the utility bills of persons whose incomes were below the poverty level.The city should account for the $15,000 gift in

Explain the difference between an internal cash and investment pool and an external cash and investment pool and describe some of the differences in accounting treatment between the two.

Which of the following statements is true regarding termination benefits?

Tax agency funds assume liability for gross levies,not for the amounts the levying funds or units expect to collect.

An agency fund should be used to account for special assessment billing and collection,and related debt service of special assessment debt,if the government has no responsibility for the debt.

All fiduciary funds report transactions between the fund and both internal and external parties.

It is common for an agency fund to have relatively small net position balances.

Explain the purpose of the account "undistributed change in fair value of investments" used in a cash and investment pool and describe how it should be reported in the government's financial statements.

Which of the following is the appropriate basis of accounting for an agency fund?

The financial position of the Policemen's Pension Fund administered by a city should be reported in the city's basic financial statements as a column in the

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

Explain the purpose of an investment trust fund and describe its accounting treatment.

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.

Investment trust funds and pension trust funds should be accounted for in the same manner as permanent funds.

Which of the following statements regarding the financial reporting of agency funds is not true?

Fiduciary funds are sometimes identified in the annual reports of state and local governments as "Trust and Agency Funds."

Which of the following is the appropriate measurement focus for agency funds?

Introduction to Accounting and Financial Reporting for Governmental 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 Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

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

Other postemployment benefits (OPEB)are not reported by governments since their costs are not fully known until payments are made.

Describe the types of pension plans most often found in governmental entities and the differences between them.Do you expect that most governmental employers sponsor a "single-employer plan" or participate in a public employee retirement system (PERS)?

If a state or local government acts as an intermediary between the federal government and beneficiary recipients in processing grant or entitlement resources,those resources should be accounted for in an agency fund.

A local civic organization gave the city government $15,000 cash to be used to pay the utility bills of persons whose incomes were below the poverty level.The city should account for the $15,000 gift in

Explain the difference between an internal cash and investment pool and an external cash and investment pool and describe some of the differences in accounting treatment between the two.

Which of the following statements is true regarding termination benefits?

Tax agency funds assume liability for gross levies,not for the amounts the levying funds or units expect to collect.

An agency fund should be used to account for special assessment billing and collection,and related debt service of special assessment debt,if the government has no responsibility for the debt.

All fiduciary funds report transactions between the fund and both internal and external parties.

It is common for an agency fund to have relatively small net position balances.

Explain the purpose of the account "undistributed change in fair value of investments" used in a cash and investment pool and describe how it should be reported in the government's financial statements.

Which of the following is the appropriate basis of accounting for an agency fund?

The financial position of the Policemen's Pension Fund administered by a city should be reported in the city's basic financial statements as a column in the

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

Explain the purpose of an investment trust fund and describe its accounting treatment.

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.

Investment trust funds and pension trust funds should be accounted for in the same manner as permanent funds.

Which of the following statements regarding the financial reporting of agency funds is not true?

Fiduciary funds are sometimes identified in the annual reports of state and local governments as "Trust and Agency Funds."

Which of the following is the appropriate measurement focus for agency funds?

Introduction to Accounting and Financial Reporting for Governmental 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 Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizations-Regulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters