Problems: 8-16 : Multiple Choice. Choose the best answer. 1. Which of the following is not a fiduciary fund? a. Permanent fund. b. Private-purpose trust fund. c. Investment trust fund. d. Agency 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 sev- eral local governments. b. Afundusedtodistributescholarshipstothechildrenofthecityspoliceofficers. c. A fund used to account for gasoline taxes collected for road maintenance. d. A fund used to account for risk management services provided to other funds of the government. 3. Fiduciary fund activities are not included in the government-wide financial statements: a. Because the resources in the funds are not owned by the government. b. Unless the government has an interest in the fund activities. c. If there is no fiduciary net position in the fund. d. When there are offsetting liabilities. 4. Tax agency funds: a. Are required to account for a governments collection and remittance of federal and state payroll taxes. b. Are used by a countys assessor to compute the amount of taxes due on the properties contained within the county. c. Are used to account for the collection and distribution of taxes when one government collects taxes for multiple purposes and governments. d. Are not allowed to charge for the services rendered to the various govern- mental funds and other governments. 5. An investment trust fund should be used when: a. A government manages investments for multiple internal participants. b. A government manages investments for itself and other external entities. c. A government receives an endowment from a citizen where only the income from the fund may be used to support a public library. d. A government hires an outside investment manager. 6. 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. 7. How are agency funds reported in a CAFR? a. Agency funds are reported in the statement of changes in fiduciary net position. b. Agency funds are reported in the Governmental Activities column of the government-wide statements. c. Agency funds are reported in the Business-type Activities column of the government-wide statements. d. Governments may opt to prepare a combining statement of net position to display the assets and liabilities of individual agency funds. 8. Fiduciary funds: a. Are accounted for using the accrual basis of accounting. b. Include trust, agency, and permanent funds. c. Are not included in a governments CAFR since they account for assets not owned by the government. d. Cannot recognize investment gains until the associated investment is sold. 9. Colby City has a single pension plan for its employees, all of whose salaries and wages are paid from the General Fund. Ordinarily, the citys General Fund should report an expenditure for its annual pension cost related to a defined benefit pension plan in an amount equal to the: a. Actual amount contributed to the plan. b. Value of current year benefits. c. Net annual change in amounts normally expected to be liquidated with expendable available financial resources. d. Both a and c. 10. When the defined benefit pension obligations of several employers are com- bined and the accounts of the employees of each employer are separately maintained, the plan is classified as: a. A single-employer pension plan. b. A multiple-employer benefit-sharing pension plan. c. An agent multiple-employer pension plan. d. A cost-sharing multiple-employer pension plan.