Question 1

Unfunded pension obligations are not reported in the fund-basis statements for governmental funds.

Accepted Answer

A) True 
 B)False  True

Question 2

The amount to be recorded as additions for gifts by the private-purpose trust fund would be:

Accepted Answer

A)   $1,000,000
B)   $1,100,000
C)   $1,150,000
D)   $1,170,000 B

Question 3

Pension trust funds are required to present a Schedule of Funding Progress and a Schedule of Employer Contributions as required supplementary information.

Accepted Answer

A) True 
 B)False  True

Question 4

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the net pension obligation.

Accepted Answer

A) True 
 B)False

Question 5

Fiduciary Funds use the Accrual basis of accounting and are not included in the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements about agency funds is true?

Accepted Answer

A)   An agency relationship that usually results in the creation of an agency fund is the collection of taxes and other revenues by an official of one governmental unit for other governmental units
B)   GASB mandates that a governmental unit that has no obligation to assume debt service on special assessment debt in the event property owners' default but that does perform the functions of billing property owners for the assessments, collecting installments of assessments and interest on the assessments and paying from the collections interest and principal on the special assessment debt account for those activities in an agency fund
C)   Both of the above
D)   Neither of the above

Question 7

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Accepted Answer

A)   Only if the governmental unit desires to disclose the status of employee retirement plans to its employees
B)   In all cases when the governmental unit has an obligation to provide funding for employee retirement
C)   Only if the governmental unit is the trustee for the PERS
D)   Whenever governmental employees have a retirement plan, whether or not the governmental unit is obligated to provide funding

Question 8

Agency Funds are not included in the Government Wide Financial Statements because:

Accepted Answer

A)   These Funds use the modified accrual basis of accounting
B)   The resources are not available to the reporting unit
C)   The government doesn't keep track of these types of funds
D)   These funds do not have a material effect on the financial statements

Question 9

If a government had two pension plans; one a locally administered plan for which it is trustee and one a statewide plan to which it contributes; the government would report only the locally administered plan as a pension trust fund in the basic financial statements.

Accepted Answer

A) True 
 B)False

Question 10

When accounting for other postemployment benefits, the OPEB obligation is:

Accepted Answer

A)   Reported in the government-wide statements, but not the fund basis statements
B)   The cumulative difference between the amount funded and the annual required contribution
C)   Both A and B
D)   Neither A nor B

Question 11

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

Question 12

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan and a statewide agency plan. The City would include in its CAFR financial statements for:

Accepted Answer

A)   All three plans
B)   The locally administered plan plus the statewide agency plan
C)   Both statewide plans
D)   The locally administered plan only

Question 13

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 2 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)   $700,000
B)   $784,000
C)   $770,000
D)   $4,200,000

Question 14

Fiduciary Fund activities report in terms of Revenues and Expenses.

Accepted Answer

A) True 
 B)False

Question 15

According to GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments of internal investment pools are to be reported in:

Accepted Answer

A)   The funds providing the resources for the investments
B)   An investment trust fund
C)   Either A or B
D)   Both A and B

Question 16

Defined contribution plans usually report unfunded actuarial liabilities.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

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

Question 19

Which of the following statements regarding employer reporting of pension or other employee benefit trust funds is not correct?

Accepted Answer

A)   Contributions by the governmental funds are recorded as expenditures
B)   Unfunded amounts are reported in the government-wide statements
C)   Proprietary funds record an expense equivalent to the required contribution
D)   Governmental funds report unfunded amounts as a fund liability

Question 20

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

Accepted Answer

A)   Investment trust fund
B)   Pension fund
C)   General fund.
D)   The fund(s)  providing the resources

Exam 7: Fiduciary Trust Funds

Unfunded pension obligations are not reported in the fund-basis statements for governmental funds.

The amount to be recorded as additions for gifts by the private-purpose trust fund would be:

Pension trust funds are required to present a Schedule of Funding Progress and a Schedule of Employer Contributions as required supplementary information.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the net pension obligation.

Fiduciary Funds use the Accrual basis of accounting and are not included in the government-wide financial statements.

Which of the following statements about agency funds is true?

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Agency Funds are not included in the Government Wide Financial Statements because:

If a government had two pension plans; one a locally administered plan for which it is trustee and one a statewide plan to which it contributes; the government would report only the locally administered plan as a pension trust fund in the basic financial statements.

When accounting for other postemployment benefits, the OPEB obligation is:

Escheat property is best described as which of the following?

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan and a statewide agency plan. The City would include in its CAFR financial statements for:

Fiduciary Fund activities report in terms of Revenues and Expenses.

According to GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments of internal investment pools are to be reported in:

Defined contribution plans usually report unfunded actuarial liabilities.

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

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

Which of the following statements regarding employer reporting of pension or other employee benefit trust funds is not correct?

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