GASB Had Issued a Proposed Standard That Would More Clearly

question 131

Multiple Choice

GASB had issued a proposed standard that would more clearly define fiduciary activities and change the categories of fiduciary funds. Which of the following statements is correct?

• A) Under the proposed standard, pension and postemployment benefit trusts may no longer be reported in fiduciary funds.
• B) The proposal no longer uses the categories of private purpose trust funds, investment trust funds, and pension and other employee benefit) trust funds.
• C) Activities meeting the definition of fiduciary in nature but that lack a formal trust agreement will in the future be reported in a new category, custodial fund.
• D) The proposed standard provides guidance as to which activities are included in fiduciary funds and completely changes the accounting and reporting of fiduciary activities.

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Definitions:

Understand the World

The process of comprehending or making sense of the environment and society around one.

Resourcefulness

The ability to find quick and clever ways to overcome difficulties or challenges.

Wechsler

Refers to a series of standardized tests used to assess human intelligence, developed by psychologist David Wechsler.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.