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:

Principal

In finance, refers to the original sum of money borrowed in a loan, or invested, separate from interest or profit.

Corresponding Right

A right that matches or is equivalent to an obligation, duty, or entitlement in a jurisprudential context.

Indemnify

To compensate for harm or loss sustained, or to protect someone by promising to compensate for the damage or loss they might incur.

Tort Claim

A legal claim arising from an act or omission that causes harm or injury, which is not derived from a contract breach.