Which of the Following Is Not Correct Regarding Government Trust

question 51

Multiple Choice

Which of the following is not correct regarding Government Trust Accounting?

• A) If a trust is to benefit the government or its citizenry, it should be accounted for in a special revenue or permanent fund.
• B) If a trust is to benefit individuals, private organizations, or other governments, it should be accounted for in a private-purpose trust fund.
• C) The journal entry to establish a permanent fund would include a credit to Fund Balance - Restricted.
• D) Trust funds accounted for in a permanent fund use modified accrual accounting.

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Definitions:

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges or favors granted by one country or organization to another.

Stanford Prison Experiment

A controversial psychological study conducted in 1971, simulating a prison environment to investigate the effects of perceived power, behavior, and authority.

Cultural Expectations

The norms and values that a society or community holds, which guide and shape the behavior and attitudes of its members.

Injunctive Norms

Social norms that depict what behaviors are typically approved or disapproved by a society or group.