Exam 8: Accounting for Fiduciary Activitiesagency and Trust Funds

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

(Multiple Choice)

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Question 41

Agency funds are used only if a government holds resources in a purely custodial capacity for others.

(True/False)

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Question 42

Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements.

(True/False)

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Question 43

Most investment trust funds distribute investment earnings and changes in investment values on a daily basis.

(True/False)

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Question 44

The cash and investment pool of Lake City allocates dividends,interest,and capital gains and losses on a periodic basis.When the cash and investment pool accrues interest earned on investments in debt securities,pending allocation to participating funds,it would credit which of the following accounts?

(Multiple Choice)

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Question 45

If a city has a responsibility for endowed resources,how would city management decide whether to account for the resources in a permanent fund or a trust fund? How does financial reporting of the funds differ?

(Essay)

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Question 46

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.

(True/False)

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Question 47

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

(Multiple Choice)

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Question 49

Which of the statements concerning agency funds is ?

(Multiple Choice)

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Question 50

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

(Multiple Choice)

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Question 51

A local civic group gave the county government $25,000 cash to be used to pay the utility bills of persons with income below the poverty level.The city should account for the $25,000 contribution in:

(Multiple Choice)

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Question 52

When a cash and investment pool of a certain city was established,the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $2,900,000.To record this transaction,the journal entry made by the debt service fund will include:

(Multiple Choice)

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Question 53

Resources that are held in trust for the benefit of the government's own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

(True/False)

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Question 54

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.

(True/False)

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Question 55

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

(True/False)

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Question 57

Briefly describe how GASB Statements 67 and 68 compare to prior pension accounting standards.

(Essay)

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Question 58

An investment trust fund is used to report the net position available to the:

(Multiple Choice)

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Question 59

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

(Multiple Choice)

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Question 60

Showing 41 - 60 of 63

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

Agency funds are used only if a government holds resources in a purely custodial capacity for others.

Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements.

Most investment trust funds distribute investment earnings and changes in investment values on a daily basis.

If a city has a responsibility for endowed resources,how would city management decide whether to account for the resources in a permanent fund or a trust fund? How does financial reporting of the funds differ?

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.

Other postemployment benefits may include:

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

Which of the statements concerning agency funds is ?

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

A local civic group gave the county government $25,000 cash to be used to pay the utility bills of persons with income below the poverty level.The city should account for the $25,000 contribution in:

When a cash and investment pool of a certain city was established,the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $2,900,000.To record this transaction,the journal entry made by the debt service fund will include:

Resources that are held in trust for the benefit of the government's own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

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.

Other postemployment benefits (OPEB)include benefits other than pensions,such as health care,life insurance,and long-term care.

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

Briefly describe how GASB Statements 67 and 68 compare to prior pension accounting standards.

An investment trust fund is used to report the net position available to the:

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 Activitiesillustrative 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 Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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