Fiduciary Funds Are Used to Account for Assets Held by a Government

question 93

True/False

Fiduciary funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit, including individuals, organizations, and other governmental units. For this reason, fiduciary funds are often identified in governmental financial reports as Trust and Agency Funds.

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Definitions:

Positive Statement

An objective statement that can be tested or validated and is based on factual information.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Cogito Ergo Sum

A philosophical statement by René Descartes, which translates to "I think, therefore I am," used to demonstrate the existence of the self and consciousness.

Carpe Diem

A Latin aphorism usually translated as "seize the day," encouraging individuals to make the most of the present moment without concern for the future.