Question

State whether the following sentences are true or false regarding the nature of fiduciary-type funds and the accounting measurements within them. If the sentence is false, state why. a. Governments may access the resources of fiduciary funds to help support their own programs. b. When a government sponsors an Investment Trust Fund, the portion that belongs to other governments is reported as assets of the Fund, but the portion belonging to the sponsoring government is not. c. The statement of net position for a typical Agency Fund shows assets and liabilities, but no fund balance. d. When reporting on the resources of Pension Trust Funds, equity securities held by the Funds are reported at original cost.

Answer 1

Answer:

a. Governments may access the resources of fiduciary funds to help support their own programs.

True

b. When a government sponsors an Investment Trust Fund, the portion that belongs to other governments is reported as assets of the Fund, but the portion belonging to the sponsoring government is not.

True

c. The statement of net position for a typical Agency Fund shows assets and liabilities, but no fund balance.

True

d. When reporting on the resources of Pension Trust Funds, equity securities held by the Funds are reported at original cost.

True

Explanation: