Exam 8: Accounting for Fiduciary Activities Agency and Trust Funds

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 21

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

(True/False)

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Question 22

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

(Multiple Choice)

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Question 23

If a state or local government is a party to an agency relationship,it must automatically create an agency fund in order to be in conformity with generally accepted accounting principles.

(True/False)

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Question 24

Which of the following grants received by a city would most appropriately be recorded in a "pass-through" agency fund?

(Multiple Choice)

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Question 25

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 26

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

(Multiple Choice)

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Question 27

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.

(Essay)

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Question 28

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

(True/False)

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Question 29

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

(Multiple Choice)

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Question 30

Which of the following accounts is least likely to be used by a tax agency fund?

(Multiple Choice)

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Question 31

If a city has a fiduciary responsibility for assets entrusted to it,describe the factors that the city would consider in deciding whether to account for the assets in an agency fund or a trust fund.

(Essay)

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Question 32

Which of the following is a valid reason for establishing a tax agency fund and charging a collection fee to other governments?

(Multiple Choice)

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Question 33

Public Employee Retirement Systems should utilize the modified accrual basis of accounting.

(True/False)

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Question 34

Which of the following statements is true regarding termination benefits?

(Multiple Choice)

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Question 35

"Because investment trust funds are intended to generate income on an ongoing basis to be used to support the purposes for which the trust was created,they should use modified accrual accounting." Discuss.

(Essay)

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Question 36

Billing and collection of special assessments and payment of debt principal and interest on special assessment debt for which the city is not obligated in any manner should be recorded in a(an):

(Multiple Choice)

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Question 37

A private-purpose trust fund sold investments in securities having a carrying value of $23,000 for $26,000,resulting in a $3,000 gain on the change in value.If there are no trust provisions to the contrary,the gain is generally

(Multiple Choice)

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Question 38

An agency fund accounts for assets held by a government for the long-term in the capacity of a trustee for an individual,organization,other fund,or other government.

(True/False)

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Question 39

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

(Multiple Choice)

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Question 40

Showing 21 - 40 of 56

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

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

If a state or local government is a party to an agency relationship,it must automatically create an agency fund in order to be in conformity with generally accepted accounting principles.

Which of the following grants received by a city would most appropriately be recorded in a "pass-through" agency fund?

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

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

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.

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

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

Which of the following accounts is least likely to be used by a tax agency fund?

If a city has a fiduciary responsibility for assets entrusted to it,describe the factors that the city would consider in deciding whether to account for the assets in an agency fund or a trust fund.

Which of the following is a valid reason for establishing a tax agency fund and charging a collection fee to other governments?

Public Employee Retirement Systems should utilize the modified accrual basis of accounting.

Which of the following statements is true regarding termination benefits?

"Because investment trust funds are intended to generate income on an ongoing basis to be used to support the purposes for which the trust was created,they should use modified accrual accounting." Discuss.

Billing and collection of special assessments and payment of debt principal and interest on special assessment debt for which the city is not obligated in any manner should be recorded in a(an):

A private-purpose trust fund sold investments in securities having a carrying value of $23,000 for $26,000,resulting in a $3,000 gain on the change in value.If there are no trust provisions to the contrary,the gain is generally

An agency fund accounts for assets held by a government for the long-term in the capacity of a trustee for an individual,organization,other fund,or other government.

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

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 Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

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