(Multiple choice)

1. The principal amount of a gift held in a trust that cannot be spent should be accounted for in which of the following funds?

a. General Fund

b. Special Revenue Fund

c. Capital Projects Fund

d. Private Purpose Trust Fund 2. In what way can the amounts in an Investment Trust Fund be invested?

a. Any way the government that operates the fund wishes

b. Only in corporate stocks and bonds

c. Only as provided in the trust agreement

d. Only in governmental bonds 3. To what type of account are contributions to a Pension Trust Fund usually credited?

a. A revenue account

b. An expenditure account

c. An additions account

d. A net assets account 4. How are proceeds on the sale of an investment in excess of its book value handled in a Private Purpose Trust Fund?

a. May be credited to the asset account

b. May be debited or credited to the asset account

c. Must be credited to an additions account

d. May be debited to the assets or an additions account 5. Financial statements for a Pension Trust Fund

a. Are not reported in governmental fund financial statements.

b. Must be reported in governmental fund financial statements.

c. Are included in the General Fund for financial reporting purposes.

d. Are included in the Special Revenue Fund for financial reporting purposes.