Trust Funds Often Exist Over a Longer Period of Time

question 28

True/False

Trust funds often exist over a longer period of time than agency funds,represent and develop vested interests of a beneficiary to a greater extent,and involve more complex administration and financial accounting and reporting.

---

Definitions:

Accounting Period

A specific period of time for which financial records are maintained and financial statements are prepared.

Unearned Revenue

Refers to the money received by a company for goods or services yet to be delivered or performed, thus considered a liability.

Prepayment

The act of paying for a good, service, or expense in advance before receiving or incurring it.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.