Question 1

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 2

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool 
B)  Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities 
C)  Both of the above 
D)  Neither of the above 
A)  Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool 
B)  Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities 
C)  Both of the above 
D)  Neither of the above

Question 3

What is a defined benefit pension plan?

Accepted Answer

The term to describe a pension

Question 4

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

Accepted Answer

A)  All are accounted for in the same manner as proprietary funds 
B)  Agency funds are accounted for using the same basis as governmental funds, trust funds are accounted for using the same basis as proprietary funds 
C)  Trust funds are accounted for using the same basis as governmental funds and agency funds are accounted for using the same basis as proprietary funds 
D)  All are accounted for in the same manner as governmental funds 
A)  All are accounted for in the same manner as proprietary funds 
B)  Agency funds are accounted for using the same basis as governmental funds, trust funds are accounted for using the same basis as proprietary funds 
C)  Trust funds are accounted for using the same basis as governmental funds and agency funds are accounted for using the same basis as proprietary funds 
D)  All are accounted for in the same manner as governmental funds

Question 5

Which of the following is true regarding accounting for investments by state and local governmental units?

Accepted Answer

A)  Investments in all securities with determinable fair values (including bonds held to maturity) are to be reported at fair value 
B)  Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Assets 
C)  Both of the above 
D)  A or B above 
A)  Investments in all securities with determinable fair values (including bonds held to maturity) are to be reported at fair value 
B)  Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Assets 
C)  Both of the above 
D)  A or B above

Question 6

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)  All of the Above Are Examples of Fiduciary Funds 
A)  Private-Purpose Trust Fund 
B)  Investment Trust Fund 
C)  Pension Trust Fund 
D)  All of the Above Are Examples of Fiduciary Funds

Question 7

A defined benefit plan will never have unfunded actuarial liabilities.

Accepted Answer

A) True 
 B)False

Question 8

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Accepted Answer

A)  Investment Trust 
B)  Private-Purpose Trust 
C)  Pension Trust 
D)  Employee Benefit Trust 
A)  Investment Trust 
B)  Private-Purpose Trust 
C)  Pension Trust 
D)  Employee Benefit Trust

Question 9

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 10

Private-purpose Trust Funds are used to report trust arrangements, like scholarship
endowments.

Accepted Answer

A) True 
 B)False

Question 11

In an agency fund the government is acting as an agent for another entity and therefore they do not have rights to these types of funds.

Accepted Answer

A) True 
 B)False

Question 12

Private-purpose trust funds account for donated resources that benefit the general citizenry.

Accepted Answer

A) True 
 B)False

Question 13

The County of Churchville is trustee for a multi-government investment pool and has established an investment trust fund. Included in the investment trust fund, for management purposes, are investments in the amount of $15 million from the County's General Fund, $2 million from the County's special revenue funds and $112 million from other governments. Which of the following would be true?

Accepted Answer

A)  The County would report the $112 million in an investment trust fund and the$17 million in a permanent fund 
B)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund and the $2 million in special revenue funds 
C)  The County would report the entire $129 million in an investment trust fund 
D)  The County would report the entire $17 million in an investment trust fund 
A)  The County would report the $112 million in an investment trust fund and the$17 million in a permanent fund 
B)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund and the $2 million in special revenue funds 
C)  The County would report the entire $129 million in an investment trust fund 
D)  The County would report the entire $17 million in an investment trust fund

Question 14

How are Fiduciary Funds presented in the Government Wide Financial Statements?

Accepted Answer

A)  Combined with Internal Service Fund the adjusting Entrees are made 
B)  Combined with Business level activities totals and then put in to proper statements 
C)  Combined with governmental level activities and then put into proper statements 
D)  None of the Above 
A)  Combined with Internal Service Fund the adjusting Entrees are made 
B)  Combined with Business level activities totals and then put in to proper statements 
C)  Combined with governmental level activities and then put into proper statements 
D)  None of the Above

Question 15

Investments in a private-purpose trust fund should generally be reported using cost basis.

Accepted Answer

A) True 
 B)False

Question 16

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

Accepted Answer

A)  Defined Benefit 
B)  Defined Contribution 
C)  Contributory 
D)  Noncontributory 
A)  Defined Benefit 
B)  Defined Contribution 
C)  Contributory 
D)  Noncontributory

Question 17

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

Accepted Answer

A) True 
 B)False

Question 18

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked. What type of pension plan does the employee have?

Accepted Answer

A)  Defined Contribution Plan 
B)  Normal Payout Plan 
C)  Defined Benefit Plan 
D)  None of the above 
A)  Defined Contribution Plan 
B)  Normal Payout Plan 
C)  Defined Benefit Plan 
D)  None of the above

Question 19

Defined Benefit 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 20

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

Accepted Answer

A) True 
 B)False

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

Which of the following is true regarding fiduciary funds?

What is a defined benefit pension plan?

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

Which of the following is true regarding accounting for investments by state and local governmental units?

Which of the following is not a fiduciary fund?

A defined benefit plan will never have unfunded actuarial liabilities.

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Which of the following is true regarding fiduciary funds?

Private-purpose Trust Funds are used to report trust arrangements, like scholarship endowments.

In an agency fund the government is acting as an agent for another entity and therefore they do not have rights to these types of funds.

Private-purpose trust funds account for donated resources that benefit the general citizenry.

How are Fiduciary Funds presented in the Government Wide Financial Statements?

Investments in a private-purpose trust fund should generally be reported using cost basis.

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked. What type of pension plan does the employee have?

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

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

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

Filters

Exam 7: Fiduciary Trust Funds

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

Which of the following is true regarding fiduciary funds?

What is a defined benefit pension plan?

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

Which of the following is true regarding accounting for investments by state and local governmental units?

Which of the following is not a fiduciary fund?

A defined benefit plan will never have unfunded actuarial liabilities.

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Which of the following is true regarding fiduciary funds?

Private-purpose Trust Funds are used to report trust arrangements, like scholarship endowments.

In an agency fund the government is acting as an agent for another entity and therefore they do not have rights to these types of funds.

Private-purpose trust funds account for donated resources that benefit the general citizenry.

How are Fiduciary Funds presented in the Government Wide Financial Statements?

Investments in a private-purpose trust fund should generally be reported using cost basis.

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years the employee worked. What type of pension plan does the employee have?

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

The categories on the Statement of Changes in Fiduciary Net Assets are Additions and Deductions.

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

Filters