Question 1

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.

Question 2

Fiduciary funds use the current financial resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements regarding employer reporting of pension trust funds is not correct?

Accepted Answer

A)  Contributions by the governmental funds are recorded as expenditures in the General Fund. 
B)  The net pension liabilities are reported in the government-wide statements. 
C)  The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statements 
D)  Governmental funds report net pension liabilities of governmental fund employees as a fund liability.

Question 4

The Accrual Basis and Economic Resource Measurement Focus are used for Private-Purpose,Investment Trust and Pension Funds.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

The purpose of the Schedule of Changes in Net Pension Liability and Required Ratios (part of the required supplementary information)is to enable the reader to determine whether the pension plan is sufficiently funded.

Accepted Answer

A) True 
 B)False

Question 7

What is a cost sharing state pension plan?

Accepted Answer

The answer of What is a cost sharing state pension...

Question 8

Agency fund assets and liabilities are to be recognized :

Accepted Answer

A)  At the time the government becomes responsible for the assets. 
B)  When they are available and measurable. 
C)  Only in the government-wide financial statements. 
D)  When the earnings process is complete and collection is reasonably assured.

Question 9

Property that reverts to government ownership upon the death of the owner because of a lack of identifiable heirs is termed Escheat Property.

Accepted Answer

A) True 
 B)False

Question 10

GASB No.53 establishes reporting requirements for governments entering into derivative instruments. What is the treatment of hedging vs.investment derivatives?

Accepted Answer

The answer of GASB No.53 establishes reporting requirements for governments...

Question 11

Proprietary funds record the net pension liability as a fund liability.

Accepted Answer

A) True 
 B)False

Question 12

Pension expenditures for governmental type funds are equal to the amounts paid to the pension fund for current year service plus any accruals for amounts to be paid from current financial resources.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is not correct with respect to Agency Funds?

Accepted Answer

A)  Agency funds use modified accrual accounting 
B)  Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent. 
C)  Assets are offset by an equal amount of liabilities. 
D)  Assets and liabilities are recognized at the time the government becomes responsible for the assets.

Question 14

The tax agency fund of Eden County collected $2,000,000 for the Eden School District,$1,000,000 for the Village of Edenton,$1,200,000 for the Eden Park District,and $700,000 for Eden County. County General Fund employees handle the collections,and a 3 percent collection fee is charged all units except the county. The amount to be remitted to the county General Fund would be:

Accepted Answer

A)  $126,000. 
B)  $147,000. 
C)  $747,000. 
D)  $826,000.

Question 15

Pension trust funds are required to present a ten year Schedule of Changes in Net Pension Liability and Related Ratios as required supplementary information.

Accepted Answer

A) True 
 B)False

Question 16

Churchville County 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,$3 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 $18 million in an investment trust fund. 
B)  The County would report the entire $130 million in an investment trust fund. 
C)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund, and the $3 million in special revenue funds. 
D)  The County would report the $112 million in an investment trust fund and the$18 million in a permanent fund.

Question 17

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.

Question 18

Jasper City is trustee for the Henry J.Moooney Endowment Fund,created to provide scholarships for students. This is an example of which type of fund?

Accepted Answer

A)  Permanent. 
B)  Pension trust. 
C)  Agency. 
D)  Private-purpose trust.

Question 19

Fiduciary Fund activities report in terms of Revenues and Expenses.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 7: Fiduciary Funds, Inter-fund Transactions

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

Fiduciary funds use the current financial resource measurement focus.

Which of the following statements regarding employer reporting of pension trust funds is not correct?

The Accrual Basis and Economic Resource Measurement Focus are used for Private-Purpose,Investment Trust and Pension Funds.

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

The purpose of the Schedule of Changes in Net Pension Liability and Required Ratios (part of the required supplementary information)is to enable the reader to determine whether the pension plan is sufficiently funded.

What is a cost sharing state pension plan?

Agency fund assets and liabilities are to be recognized :

Property that reverts to government ownership upon the death of the owner because of a lack of identifiable heirs is termed Escheat Property.

GASB No.53 establishes reporting requirements for governments entering into derivative instruments. What is the treatment of hedging vs.investment derivatives?

Proprietary funds record the net pension liability as a fund liability.

Pension expenditures for governmental type funds are equal to the amounts paid to the pension fund for current year service plus any accruals for amounts to be paid from current financial resources.

Which of the following statements is not correct with respect to Agency Funds?

Pension trust funds are required to present a ten year Schedule of Changes in Net Pension Liability and Related Ratios as required supplementary information.

Which of the following is true regarding fiduciary funds?

Jasper City is trustee for the Henry J.Moooney Endowment Fund,created to provide scholarships for students. This is an example of which type of fund?

Fiduciary Fund activities report in terms of Revenues and Expenses.

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.