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Chapter 8 Exam Questions With Verified
Answers.
Which of the following is needed for a fiduciary relationship to exist?
A. The assets are controlled by outside entities.
B. The assets are derived from the reporting entity's own revenues, which are used to benefit
others.
C. The assets are for the benefit of individuals and/or entities that are not part of the reporting
entity.
D. The assets are derived from a pass-through grant for which the reporting entity has
administrative responsibility. - answer✔C
Which of the following could be considered a fiduciary fund?
A. External investment pool.
B. Permanent fund.
C. Private-purpose trust fund.
D. Both external investment pool and private-purpose trust fund. - answer✔D
Which of the following is prepared by fiduciary funds?
A. Statement of fiduciary net position.
B. Statement of fiduciary cash flows.
C. Statement of fiduciary activities.
D. All of the choices are correct. - answer✔A
Tax custodial funds
A. Are required to account for a government's collection and remittance of federal and state
payroll taxes.
Chapter 8 Exam Questions With Verified
Answers.
Which of the following is needed for a fiduciary relationship to exist?
A. The assets are controlled by outside entities.
B. The assets are derived from the reporting entity's own revenues, which are used to benefit
others.
C. The assets are for the benefit of individuals and/or entities that are not part of the reporting
entity.
D. The assets are derived from a pass-through grant for which the reporting entity has
administrative responsibility. - answer✔C
Which of the following could be considered a fiduciary fund?
A. External investment pool.
B. Permanent fund.
C. Private-purpose trust fund.
D. Both external investment pool and private-purpose trust fund. - answer✔D
Which of the following is prepared by fiduciary funds?
A. Statement of fiduciary net position.
B. Statement of fiduciary cash flows.
C. Statement of fiduciary activities.
D. All of the choices are correct. - answer✔A
Tax custodial funds
A. Are required to account for a government's collection and remittance of federal and state
payroll taxes.
