Which of the Following Is True Regarding Fiduciary Funds

question 81

Multiple Choice

Which of the following is true regarding fiduciary funds?

• A) Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool.
• B) Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Total Revenue

Total revenue is the total income generated by a company from its sales of goods or services before any expenses are subtracted.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.

Profit-Maximizing

A strategy where a firm adjusts its production and pricing to achieve the highest possible profit.

Loss-Minimizing

A strategy or approach targeted at reducing the negative impact of losses in business or investment.