WGU Practice Questions C252 Chapter 12 with Answers (Graded A+)

2. Even though each of the following funds involve a form of fiduciary responsibility, the fund that is not reported as a fiduciary fund for GAAP reporting purposes is a (an) a. Investment Trust Fund. b. Permanent Fund. c. Private-purpose Trust Fund. d. Pension Trust Fund. - ANSWER-Permanent Fund. 3. Which of the following activities would most likely be accounted for in an Agency Fund that would be reported in the external financial statements? a. Tax collections by a county on behalf of local municipalities. b. Interfund loan payments and disbursements. c. A Federal pass-through grant. d. Special assessments for debt on which the government is not obligated in any manner. - ANSWER-Tax collections by a county on behalf of local municipalities. 4. A Pension Trust Fund that is provided by a government solely for the benefit of its employees is known as a a. Single-employer plan. b. Cost-sharing plan. c. Defined contribution plan. d. Defined benefit plan. - ANSWER-Single-employer plan. 5. A government receives a donation of $300,000 to establish an endowment fund whose income is to be used to support scholarships for local high school students. The school district is not part of the government. The government should report this activity in which type of fund? a. Permanent Fund b. Private-Purpose Trust Fund