Which of the Following Is NOT True of Agency Funds

question 8

Multiple Choice

Which of the following is NOT true of agency funds?

• A) Governments use them to account for resources held as trustee or agent for another government, fund, not-for-profit entity, or individual.
• B) They are required to use a modified accrual basis of accounting.
• C) They have no operations and therefore are not required to prepare financial statements.
• D) Agency fund assets are always offset by liabilities.

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Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and as a major economic power.

Psychodynamic

An approach in psychology that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Sociocultural

Pertaining to the influence of social and cultural factors on an individual's behavior and mental processes.

Biological

Pertains to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.