In an Agency Fund,assets Are Equal To

question 90

Multiple Choice

In an agency fund,assets are equal to:

• A) Liabilities + Net Assets
• B) Net Assets
• C) Liabilities
• D) There are no assets in an Agency Fund

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Definitions:

Accrued

Refers to incomes or expenses that have been incurred but not yet recorded in the financial statements due to the timing of cash flows.

Enhancing Quality

The process of implementing measures and practices that improve the quality of products, services, or processes.

Materiality

An accounting principle that means the significance of financial information to decision-making; insignificant details are disregarded.

Comparability

A characteristic of accounting information that allows users to analyze two or more periods of financial data or companies to identify trends and differences.