Which of the Following Is True Regarding Fiduciary Funds

question 46

Multiple Choice

Which of the following is true regarding fiduciary funds?

• A) Fiduciary funds are included in the government-wide statements but not in the fund statements.
• B) Fiduciary funds are reported by fund type, not as major funds.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Revenue Accounts

are ledger accounts that track the income earned by a company from its normal business operations, which is then reported on the income statement.

Expense Accounts

Accounts used in accounting to record all expenses transactions made by a business.

Abbreviations

Shortened forms of words or phrases used for convenience.

Debit

An entry on the left side of an account record, used to increase an asset or expense or decrease a liability, equity, or revenue.