1. Why do balance sheets of agency funds contain only assets and liabilities but no fund balances? Give an example of a governmental CAFR that reports agency funds. What types of categories can be included as agency funds?

2. What are some types of fiduciary funds? Why and how are fiduciary funds used?

3. Explain interfund activity. What types of interfund activity exist and how is each type accounted for and reported?

4. Explain five differences between fund financial statements and government-wide financial statements.