NFP Exam 3 (CH6, 7, & 8) Questions with
Complete Solutions
When is the use of Fiduciary funds appropriate? Holding for others
What are the 2 statements under Fidiciary? STMT of Fid Net Position
STMT of Changes in Fid Net Position (additions & deductions)
Fiduciary activities are excluded from Gov't wide statements
Fid activities may be performed through a legally separate unit of the gov (like pension
plans) or formal trust agreements
What are the 4 fund types under Fid Funds? Pension
Investment
Private Purpose
Custodial/Agency
, What are Agency/Custodial Funds? assets held by the gov as an agent/custodian
don't move forward
What are Private Purpose Trust Fund? agreement for a private purpose
endowment if principle is nonexpendable
investments @FV
Derivative instruments hedging - offset against deferred inflows/outflows
derivative to another investments - inv gains and losses
What are Investment Trust Funds? gov't collects $ with others, gov't is a sponsor of a
multi-dollar
investment pool
investment @FV
Complete Solutions
When is the use of Fiduciary funds appropriate? Holding for others
What are the 2 statements under Fidiciary? STMT of Fid Net Position
STMT of Changes in Fid Net Position (additions & deductions)
Fiduciary activities are excluded from Gov't wide statements
Fid activities may be performed through a legally separate unit of the gov (like pension
plans) or formal trust agreements
What are the 4 fund types under Fid Funds? Pension
Investment
Private Purpose
Custodial/Agency
, What are Agency/Custodial Funds? assets held by the gov as an agent/custodian
don't move forward
What are Private Purpose Trust Fund? agreement for a private purpose
endowment if principle is nonexpendable
investments @FV
Derivative instruments hedging - offset against deferred inflows/outflows
derivative to another investments - inv gains and losses
What are Investment Trust Funds? gov't collects $ with others, gov't is a sponsor of a
multi-dollar
investment pool
investment @FV
