Multiple Choice. Choose the best answer.
1. Which of the following is riot a fiduciary fund?
a. Permanent fund.
b. Agency fund.
c. Investment trust fund.
d. Pension trust fund.
2. Which of the following is an example of a trust fund?
a. A fund used to account for the collection and distribution of taxes to several local governments.
b. A fund used to distribute scholarships to the children of the city’s police officers.
c. A fund used to distribute low-income housing funds received from BUD (Housing and Urban Development).
d. A fund used to account for risk management services provided to other funds of the government.
3. Which of the following financial statements is prepared by fiduciary funds?
a. Statement of net assets.
b. Statement of activities.
c. Statement of cash flows.
d. All of the above.
4. At the government-wide level, where are fiduciary funds reported?
a. In the Governmental Activities column.
b. In the Business-type Activities column.
c. As a part of component units.
d. Fiduciary funds are not reported at the government-wide level.
5. The city has installed sidewalks using special assessment debt. Special assessments paid over the next 10 years will be used to retire the debt. If property owners fail to pay the assessments the city is under no obligation to pay the assessments. Debt service related to the special assessment debt used to install the sidewalks should be recorded in what fund type?
a. Private-purpose trust fund.
b. Debt service fund.
c. Agency fund.
d Capital projects fund.
6. An investment trust fund is used to report the net assets available to the:
a. Sponsoring government only.
b. External participants only.
c. Financial institution that acts as custodian for the fund’s investments. d, All of the above.
7. Which of the following fiduciary funds would account for an endowment (i.e., the principal must remain intact)?
a. Investment trust fund.
b. Private-purpose trust fund.
c. Pension trust fund.
d. Permanent fund.
8. If a county incurs the cost of monitoring grant recipients, which of the following funds would most likely account for pass-through grants to a not-for-profit organization assisting low-income individuals?
a. Private-purpose trust fund.
b. Agency fund.
c. Special revenue fund.
d. Permanent fund.
9. Arkmo City has a single pension plan for its employees, all of whose salaries and wages are paid from the General Fund. Ordinarily, the city’s General Fund should report an expenditure for its annual pension contribution to a defined benefit pension plan in an amount equal to the:
a. Annual required contribution.
b. Annual pension cost.
c. Net pension obligation.
d. Actual contribution.
10. Which OPEB financial report or schedule would help in determining whether OPEB is underfunded?
a. Statement of plan net assets.
b. Statement of changes in plan net assets.
c. Schedule of funding progress.
d. Schedule of employer contributions.