Which Is True Regarding the Basis of Accounting for Fiduciary

question 26

Multiple Choice

Which is true regarding the basis of accounting for fiduciary funds?

• A) All are accounted for in the same manner as proprietary funds.
• B) Agency funds are accounted for using the same basis as governmental funds, trust funds are accounted for using the same basis as proprietary funds.
• C) Trust funds are accounted for using the same basis as governmental funds, and agency funds are accounted for using the same basis as proprietary funds.
• D) All are accounted for in the same manner as governmental funds.

---

Definitions:

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to play a role in understanding others' actions and intentions.

Cell Membranes

The semipermeable membrane surrounding the cytoplasm of a cell, which regulates the passage of substances in and out of the cell.

Adrenal Glands

Endocrine glands located above the kidneys that produce a variety of hormones including adrenaline and cortisol.

Epinephrine

A hormone also known as adrenaline that is secreted by the adrenal glands and increases heart rate, muscle strength, blood pressure, and sugar metabolism.