Which of the Following Is True Regarding the Fiduciary Fund

question 48

Multiple Choice

Which of the following is true regarding the fiduciary fund financial statements?

• A) Fiduciary fund financial statements include the Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
• B) Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
• C) Fiduciary fund financial statements reflect equity as reserved and unreserved.
• D) Agency funds are reported only on the Statement of Changes in Fiduciary Net Assets.

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Definitions:

Useful Life

The period over which an asset is expected to be usable by an entity, affecting its depreciation or amortization schedules.

Revised Estimated

An updated forecast or projection based on new information or a more accurate assessment.

Depreciating Equipment

This refers to the reduction in the value of equipment over time due to wear and tear or obsolescence, recognized as an expense in accounting.

Estimated Total Useful Life

The approximate duration of time that an asset is expected to be functional and economically viable.