Which of the Following Statements About Agency Funds Is True

question 12

Multiple Choice

Which of the following statements about agency funds is true?

• A) An agency relationship that commonly results in the creation of an agency fund is the collection of taxes and other revenues by an official of one governmental unit for other governmental units.
• B) GASB mandates that governments report special assessment resources in an agency fund only if the reporting government has no obligation to assume debt service on special assessment debt in the event property owners' default but merely perform the functions of billing and collecting the special assessments and paying interest and principal on the special assessment debt.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Static Equilibrium

A state where an object is at rest, and the sum of all forces and torques acting on it is zero.

Macula

A small, specialized area on the retina responsible for sharp, detailed central vision.

Utricle

A part of the inner ear involved in sensing linear accelerations and head-tilts in the horizontal plane, contributing to balance and spatial orientation.

Semicircular Canals

Structures in the inner ear that are part of the vestibular system, helping to control balance and spatial orientation by detecting rotational movements.