Indicate whether the following statements are true or false. For any false statements, indicate why it is false.

1. Private Purpose Trust Funds use a capital maintenance measurement focus for recording events.

2. Investment Trust Funds use the full accrual basis of accounting for recording events.

3. The receipt of a gift by a Private Purpose Trust Fund is recorded as a direct entry to a contributed capital account.

4. A fixed budget is used to control expenditures of a Pension Trust Fund.

5. A statement of cash flows is prepared for a Private Purpose Trust Fund.

6. A statement of cash flows is prepared for a Pension Trust Fund.

7. A net income figure is calculated for a Private Purpose Trust Fund.

8. The activities of a Private Purpose Trust Fund may encompass the operation of a business.

9. All of the trust funds discussed in this chapter may be used interchangeably.