Quiz 7

5 Questions | Total Attempts: 85

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Questions and Answers
  • 1. 
    In an agency fund, assets are equal to:
    • A. 

      Liabilities

    • B. 

      Liabilities + Net Assets

    • C. 

      Net Assets

    • D. 

      There are no assets in an Agency Fund

  • 2. 
    The City of Sycamore has investments in bonds. These bonds have an amortized cost of $998,000 and a market value of $1,001,000. The market value is quoted and available in the financial press. The original cost of the bonds was $996,000. The par value at maturity will be $1,000,000. The amount at which the investments would be reported is:
    • A. 

      $996,000

    • B. 

      $998,000

    • C. 

      $1,000,000

    • D. 

      $1,001,000

  • 3. 
    Which of the following is true regarding fiduciary funds?
    • A. 

      Fiduciary funds are not included in the government-wide financial statements.

    • B. 

      Fiduciary funds include agency, pension (and other employee benefit) trust, private-purpose trust, and investment trust funds.

    • C. 

      Both of the above.

    • D. 

      Neither of the above

  • 4. 
    Which of the following is true regarding the financial statements of fiduciary funds?
    • A. 

      Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting.

    • B. 

      Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows.

    • C. 

      Both of the above.

    • D. 

      Neither of the above.

  • 5. 
    Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service.
    • A. 

      Contributory

    • B. 

      Noncontributory

    • C. 

      Defined Benefit

    • D. 

      Defined Contribution