Which of the Following Is True Regarding Fiduciary Funds

question 20

Multiple Choice

Which of the following is true regarding fiduciary funds?

• A) Fiduciary funds are included in the fund basis statements but not in the government-wide.
• B) Fiduciary funds are reported by fund type, not as major funds.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Revised Act

An amended version of legislation that incorporates changes and updates to the original act.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of stock at a set price on or before a specified date.

Compensation Plans

A system of payment or rewards offered by an employer to its employees for their work or performance.

Capital Surplus

Funds received by a company from the sale of shares in excess of their stated par value, recorded as equity in the financial statements.