Which of the Following Is True Regarding Fiduciary Funds

question 113

Multiple Choice

Which of the following is true regarding fiduciary funds?

• A) Fiduciary funds use the economic resources measurement focus and accrual accounting.
• B) Fiduciary funds include pension and other employee benefit) trust, investment trust, agency, and permanent funds.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Bonds Outstanding Method

A method used to calculate the total amount of issued bonds by a corporation that have not yet been redeemed or matured.

Amortizing Discount

An Amortizing Discount is the process of spreading the amount of a bond's discount over its expected life, usually through regular charges to expense.

Bonds Outstanding Method

The bonds outstanding method is an approach to calculating interest expense on bonds payable that considers the total value of all bonds that have not yet been redeemed by the issuer.

Serial Bonds

Bonds that mature in installments over a period rather than having a single maturity date.