Question 1

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

Accepted Answer

A) True 
 B)False

Question 2

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

Accepted Answer

A) True 
 B)False

Question 3

If a government has a locally administered pension plan for which it is trustee,the government would report the locally administered plan as a pension trust fund in the basic financial statements.

Accepted Answer

A) True 
 B)False

Question 4

Fiduciary funds use the modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 5

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 investment trust has been formed.

Accepted Answer

A) True 
 B)False

Question 6

Internal investment pools,which account for investments of the reporting entity,are to be reported within the funds providing the resources,when preparing financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Fiduciary funds use the economic resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Reporting for Defined Benefit Pension Plans requires two supplementary schedules; the Schedule of Funding Progress and the Schedule of Employers Contributions.

Accepted Answer

A) True 
 B)False

Question 10

Unless use of an agency fund is mandated by law,by GASB standards,or by decision of the governing board of a government,an agency relationship may be accounted for within governmental and/or proprietary funds.

Accepted Answer

A) True 
 B)False

Question 11

What is a defined benefit pension plan?

Accepted Answer

The term to describe a pension

Question 12

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

Accepted Answer

Private-purpose trust funds use the econ

Question 13

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Accepted Answer

A)  Taxes Receivable - Current Revenues Control 
B)  Taxes Receivable - Current Due from Other Governments 
C)  Taxes Receivable Transfer Out 
D)  Taxes Receivable for Other Governments Due to Other Governments 
A)  Taxes Receivable - Current Revenues Control 
B)  Taxes Receivable - Current Due from Other Governments 
C)  Taxes Receivable Transfer Out 
D)  Taxes Receivable for Other Governments Due to Other Governments

Question 14

The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.During the year ended June 30,2014,the following transactions occurred:
1.The City contributed $ 1,800,000 in cash to the plan.Employee members contributed an additional $ 600,000.
2.Annuity benefits in the amount of $175,000 were recorded as liabilities.
3.Annuity benefits,previously recorded as liabilities,were paid in cash in the amount of $167,000.
4.Investment income received in cash amounted to $105,000.In addition,$25,000 in interest receivable was accrued at year-end.
5.Additional investments in the amount of $2,100,000 were purchased.
6.The market value of investments decreased by $18,500.
7.Nominal accounts for the year were closed.
Required:
 Prepare journal entries for the above transactions on the books of the City of Richmond Public Safety Employee Retirement Trust Fund.

Accepted Answer

The answer of The City of Richmond maintains a Public...

Question 15

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Accepted Answer

A) True 
 B)False

Question 16

Investment Trust Funds are restricted to:

Accepted Answer

A)  External investment pools. 
B)  Open-end mutual funds. 
C)  Debt securities. 
D)  All the above. 
A)  External investment pools. 
B)  Open-end mutual funds. 
C)  Debt securities. 
D)  All the above.

Question 17

The "external portion" of an investment trust fund relates to…

Accepted Answer

A)  The portion of the investment that legally belongs to the sponsoring government. 
B)  The portion of the investment that is allocated among the sponsoring government's funds. 
C)  The portion of the investment that belongs to other participating governments. 
D)  "External portion" relates only to agency funds, not investment trust funds. 
A)  The portion of the investment that legally belongs to the sponsoring government. 
B)  The portion of the investment that is allocated among the sponsoring government's funds. 
C)  The portion of the investment that belongs to other participating governments. 
D)  "External portion" relates only to agency funds, not investment trust funds.

Question 18

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans:
 the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

Accepted Answer

A) True 
 B)False

Question 19

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 permanent funds if nonexpendable.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are included in the fund basis statements but not in the government-wide. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are included in the fund basis statements but not in the government-wide. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

If a government has a locally administered pension plan for which it is trustee,the government would report the locally administered plan as a pension trust fund in the basic financial statements.

Fiduciary funds use the modified accrual basis of accounting.

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 investment trust has been formed.

Internal investment pools,which account for investments of the reporting entity,are to be reported within the funds providing the resources,when preparing financial statements.

Fiduciary funds use the economic resource measurement focus.

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

Reporting for Defined Benefit Pension Plans requires two supplementary schedules; the Schedule of Funding Progress and the Schedule of Employers Contributions.

Unless use of an agency fund is mandated by law,by GASB standards,or by decision of the governing board of a government,an agency relationship may be accounted for within governmental and/or proprietary funds.

What is a defined benefit pension plan?

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Investment Trust Funds are restricted to:

The "external portion" of an investment trust fund relates to…

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

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 permanent funds if nonexpendable.

Which of the following is true regarding fiduciary funds?

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

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

If a government has a locally administered pension plan for which it is trustee,the government would report the locally administered plan as a pension trust fund in the basic financial statements.

Fiduciary funds use the modified accrual basis of accounting.

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 investment trust has been formed.

Internal investment pools,which account for investments of the reporting entity,are to be reported within the funds providing the resources,when preparing financial statements.

Fiduciary funds use the economic resource measurement focus.

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

Reporting for Defined Benefit Pension Plans requires two supplementary schedules; the Schedule of Funding Progress and the Schedule of Employers Contributions.

Unless use of an agency fund is mandated by law,by GASB standards,or by decision of the governing board of a government,an agency relationship may be accounted for within governmental and/or proprietary funds.

What is a defined benefit pension plan?

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Investment Trust Funds are restricted to:

The "external portion" of an investment trust fund relates to…

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

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 permanent funds if nonexpendable.

Which of the following is true regarding fiduciary funds?

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