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:

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Major Depressive Disorder

A mental disorder characterized by persistent feelings of sadness, loss of interest in activities, and other symptoms that impair daily functioning.

National Institute

Refers to a governmental organization focused on research, policy development, or service provision in a specific area of national interest.

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make a contribution to their community.