Which of the Statements Concerning Agency Funds Is

question 50

Multiple Choice

Which of the statements concerning agency funds is ?

• A) Agency funds use the same basis of accounting as permanent funds.
• B) Agency funds are reported only on the statement of fiduciary net position.
• C) Agency funds use the temporary accounts Additions and Deductions.
• D) Agency funds never receive cash.

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Definitions:

Additional Accounts

Accounts that are created to track or manage specific financial transactions not covered by the standard set of accounts.

Worksheet

An accounting tool used for planning and preparing financial statements, often in the form of a spreadsheet.

Chart of Account Order

The systematic arrangement of accounts within a chart, typically organized by type and number.

Worksheet

A paper or electronic document used by accountants to compile and analyze financial data ahead of the preparation of financial statements.