Question 1

Which is true regarding the basis of accounting for fiduciary funds?

Accepted Answer

A)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
B)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds. 
A)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
B)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds.

Question 2

If a government has no potential liability for payment of special assessment debt in the event of default by the property owners,then an agency fund may be used to account for the proceeds of the special assessment.

Accepted Answer

A) True 
 B)False

Question 3

The operations of agency funds will be included in which of the following statements?

Accepted Answer

A)  The fiduciary funds Statement of Fiduciary Net Position 
B)  The Statement of Changes in Fiduciary Net Position 
C)  The Government-wide Financial Statements 
D)  All of the above 
A)  The fiduciary funds Statement of Fiduciary Net Position 
B)  The Statement of Changes in Fiduciary Net Position 
C)  The Government-wide Financial Statements 
D)  All of the above

Question 4

Contrast the accounting for internal and external portions of investment pools.

Accepted Answer

The internal portion of investment pools

Question 5

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit:
 Including individuals,organizations,and other governmental units.

Accepted Answer

A) True 
 B)False

Question 6

Net pension liabilities are reported in statements prepared using the economic resource measurement focus and accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 7

Employers with defined contribution plans will report a pension liability if the required contribution has not been fully paid by year end.

Accepted Answer

A) True 
 B)False

Question 8

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments 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 9

When preparing financial statements,the internal portion of investment pools would be reported under which fund?

Accepted Answer

A)  Investment trust fund. 
B)  Private purpose trust fund. 
C)  Permanent fund. 
D)  The fund(s) providing the resources. 
A)  Investment trust fund. 
B)  Private purpose trust fund. 
C)  Permanent fund. 
D)  The fund(s) providing the resources.

Question 10

Fiduciary Funds are not included in the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Investments in a pension trust fund should generally be reported using fair market value.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following funds is used to account for the external portion of investment pools?

Accepted Answer

A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund 
A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund

Question 13

Which of the following is not a fiduciary fund?

Accepted Answer

A)  Private-Purpose Trust Fund. 
B)  Investment Trust Fund. 
C)  Pension Trust Fund. 
D)  Permanent Fund. 
A)  Private-Purpose Trust Fund. 
B)  Investment Trust Fund. 
C)  Pension Trust Fund. 
D)  Permanent Fund.

Question 14

Investments in a private-purpose trust fund should generally be reported using:

Accepted Answer

A)  Cost Basis. 
B)  Fair Market Value. 
C)  Equity Method. 
D)  None of the above. 
A)  Cost Basis. 
B)  Fair Market Value. 
C)  Equity Method. 
D)  None of the above.

Question 15

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are not included in the government-wide financial statements. 
B)  Fiduciary funds include agency, pension (and other employee benefit) trust, private-purpose trust, and investment trust funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are not included in the government-wide financial statements. 
B)  Fiduciary funds include agency, pension (and other employee benefit) trust, private-purpose trust, and investment trust funds. 
C)  Both of the above. 
D)  Neither of the above.

Question 16

When a government is the sponsor of a multi-government investment pool,the government should report the external portion of those trust assets in a(n):

Accepted Answer

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

Question 17

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Accepted Answer

A)  Derivatives include swaps, options, forward contracts and future contracts. 
B)  If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes. 
C)  If a hedge derivative is deemed ineffective it is classified as investment purpose. 
D)  Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements. 
A)  Derivatives include swaps, options, forward contracts and future contracts. 
B)  If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes. 
C)  If a hedge derivative is deemed ineffective it is classified as investment purpose. 
D)  Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements.

Question 18

Agency funds report the excess of assets over liabilities as "Net Position".

Accepted Answer

A) True 
 B)False

Question 19

Escheat property is best described as which of the following?

Accepted Answer

A)  Property possessed by a local government, but whose use is restricted by a higher government. 
B)  Property a government obtains and holds for the rightful owner in the absence of claimants or heirs. 
C)  Property gifted to the government by private citizens. 
D)  Property the government obtains via eminent domain. 
A)  Property possessed by a local government, but whose use is restricted by a higher government. 
B)  Property a government obtains and holds for the rightful owner in the absence of claimants or heirs. 
C)  Property gifted to the government by private citizens. 
D)  Property the government obtains via eminent domain.

Question 20

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,a private-purpose trust has been formed.

Accepted Answer

A) True 
 B)False

Which is true regarding the basis of accounting for fiduciary funds?

If a government has no potential liability for payment of special assessment debt in the event of default by the property owners,then an agency fund may be used to account for the proceeds of the special assessment.

The operations of agency funds will be included in which of the following statements?

Contrast the accounting for internal and external portions of investment pools.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Net pension liabilities are reported in statements prepared using the economic resource measurement focus and accrual basis of accounting.

Employers with defined contribution plans will report a pension liability if the required contribution has not been fully paid by year end.

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

When preparing financial statements,the internal portion of investment pools would be reported under which fund?

Fiduciary Funds are not included in the government-wide financial statements.

Investments in a pension trust fund should generally be reported using fair market value.

Which of the following funds is used to account for the external portion of investment pools?

Which of the following is not a fiduciary fund?

Investments in a private-purpose trust fund should generally be reported using:

Which of the following is true regarding fiduciary funds?

When a government is the sponsor of a multi-government investment pool,the government should report the external portion of those trust assets in a(n):

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Agency funds report the excess of assets over liabilities as "Net Position".

Escheat property is best described as which of the following?

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,a private-purpose trust has been formed.

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

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Exam 7: Fiduciary Funds, Inter-fund Transactions

Which is true regarding the basis of accounting for fiduciary funds?

If a government has no potential liability for payment of special assessment debt in the event of default by the property owners,then an agency fund may be used to account for the proceeds of the special assessment.

The operations of agency funds will be included in which of the following statements?

Contrast the accounting for internal and external portions of investment pools.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Net pension liabilities are reported in statements prepared using the economic resource measurement focus and accrual basis of accounting.

Employers with defined contribution plans will report a pension liability if the required contribution has not been fully paid by year end.

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

When preparing financial statements,the internal portion of investment pools would be reported under which fund?

Fiduciary Funds are not included in the government-wide financial statements.

Investments in a pension trust fund should generally be reported using fair market value.

Which of the following funds is used to account for the external portion of investment pools?

Which of the following is not a fiduciary fund?

Investments in a private-purpose trust fund should generally be reported using:

Which of the following is true regarding fiduciary funds?

When a government is the sponsor of a multi-government investment pool,the government should report the external portion of those trust assets in a(n):

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Agency funds report the excess of assets over liabilities as "Net Position".

Escheat property is best described as which of the following?

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,a private-purpose trust has been formed.

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