Which Is True Regarding the Basis of Accounting for Fiduciary

question 24

Multiple Choice

Which is true regarding the basis of accounting for fiduciary funds?

• A) All are accounted for using the same basis of accounting and measurement focus as proprietary funds.
• B) Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.
• C) Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.
• D) All are accounted for using the same basis of accounting and measurement focus as governmental funds.

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Definitions:

Invitees

Individuals who are invited onto a property for the benefit of the property owner, having a higher level of protection under premises liability laws.

Risk Of Harm

The potential for injury, damage, or adverse effects in a particular situation or from a specific action.

Duty To Protect

A legal obligation imposed on individuals or entities, requiring them to take reasonable steps to protect others from foreseeable harm.

Assumption Of Risk

A traditional defense to negligence liability based on the argument that the plaintiff voluntarily exposed himself to a known danger created by the defendant’s negligence.