Multiple Choice Questions
Identify the best answer to each of the following.
1. Which of the following fiduciary fund types, if any, does not have a measurement focus?
a. Pension Trust Fund
b. Private-Purpose Trust Fund
c. Agency Fund
d. All funds have a measurement focus.

2. Equity in Trust Funds is presented as
a. Restricted Net Position.
b. Net Position—Restricted for the Trust Purpose.
c. Fund Balance Restricted for the Trust Purpose.
d. Unrestricted Net Position.

3. All of the following would be an example of a trust arrangement properly accounted for in a city’s Private-Purpose Trust Fund except
a. A nonexpendable trust arrangement for the benefit of providing resources for perpetual maintenance to the city’s cemetery.
b. A nonexpendable trust arrangement established to provide scholarship opportunities for qualifying students.
c. An expendable trust arrangement that provides resources for a local nonprofit organization.
d. A nonexpendable trust arrangement that provides resources to a local private museum.

4. A trust fund’s statement of changes in net position reports contributions
a. As a revenue.
b. As an addition.
c. As they are collected.
d. As an operating revenue.

5. Which of the following types of pension plans would be least likely to be reported as a Pension Trust Fund of a participating governmental entity?
a. Single-employer plan
b. Agent multiple-employer plan
c. Defined contribution plan
d. Cost-sharing multiple-employer plan

6. Trust Funds are most commonly reported in the government-wide financial statements as
a. Governmental activities.
b. Business-type activities.
c. Fiduciary activities.
d. Blended activities.

7. How would the capital assets of a Private-Purpose Trust Fund most likely be reported?
a. As a capital asset of the fund and as a capital asset of governmental activities in the government-wide financial statements
b. As a capital asset of the fund and as a capital asset of business-type activities in the government-wide financial statements
c. As a capital asset of the fund
d. As a capital asset of fiduciary-type activities in the government-wide financial statements

8. Assume that a governmental entity provides other postemployment benefits (OPEB) to its retirees. The entity commissions an actuarial valuation of the OPEB plan and contributes to a trust in accordance with the actuarial requirements. The OPEB trust should be reported in the same manner as
a. A Pension Trust Fund.
b. A Private-Purpose Trust Fund.
c. A Special Revenue Fund.
d. An Agency Fund.

9. GAAP require that certain actuarial information for pensions be reported as required supplementary information. Which of the following schedules is not an example of such actuarial information?
a. Schedule of employee contributions
b. Schedule of funding progress
c. Schedule of employer contributions
d. All of the above schedules are examples of required supplementary information

10. The net change amount is reduced by pension contributions due and payable on the operating statement of
a. Business-type.
b. Governmental activities.
c. Governmental funds.
d. Proprietary funds.