ndicate which of the following statements regarding Fiduciary Funds are TRUE. (select all that apply) Pension Trust Funds use the economic resources measurement focus and the accrual basis of accounting. Fiduciary funds are not included in the Government-Wide Financial Statements. Agency Funds are different from other Fiduciary Funds because Agency Funds have no liabilities. Fiduciary Funds use the terms Additions and Deductions rather than Revenues and Expenses. A Private-Purpose Trust Fund is used when a donor provides resources to a state that the state can use for any purpose agreed upon by the governor and the legislature. A Permanent Fund is a Fiduciary Fund used to account for donations in which the principal must be maintained, but the earnings may be spent for a public purpose.A. Pension Trust Funds use the economic resources measurement focus and the accrual basis of accounting.B. Fiduciary funds are not included in the Government-Wide Financial Statements.C. Agency Funds are different from other Fiduciary Funds because Agency Funds have no liabilities.D. Fiduciary Funds use the terms Additions and Deductions rather than Revenues and Expenses.E. A Private-Purpose Trust Fund is used when a donor provides resources to a state that the state can use for any purpose agreed upon by the governor and the legislature.F. A Permanent Fund is a Fiduciary Fund used to account for donations in which the principal must be maintained, but the earnings may be spent for a public purpose. Solution A is true. reason- fiduciary fund is used in governmental accounting to report on assets held in trust for others. When financial statements are prepared for fiduciary funds, they are presented using the economic resources measurement focus and the accrual basis of accounting..

1. ndicate which of the following statements regarding Fiduciary Funds are TRUE. (select all that
apply)
Pension Trust Funds use the economic resources measurement focus and the accrual basis of
accounting.
Fiduciary funds are not included in the Government-Wide Financial Statements.
Agency Funds are different from other Fiduciary Funds because Agency Funds have no
liabilities.
Fiduciary Funds use the terms Additions and Deductions rather than Revenues and Expenses.
A Private-Purpose Trust Fund is used when a donor provides resources to a state that the state
can use for any purpose agreed upon by the governor and the legislature.
A Permanent Fund is a Fiduciary Fund used to account for donations in which the principal must
be maintained, but the earnings may be spent for a public purpose.A.
Pension Trust Funds use the economic resources measurement focus and the accrual basis of
accounting.B.
Fiduciary funds are not included in the Government-Wide Financial Statements.C.
Agency Funds are different from other Fiduciary Funds because Agency Funds have no
liabilities.D.
Fiduciary Funds use the terms Additions and Deductions rather than Revenues and
Expenses.E.
A Private-Purpose Trust Fund is used when a donor provides resources to a state that the state
can use for any purpose agreed upon by the governor and the legislature.F.
A Permanent Fund is a Fiduciary Fund used to account for donations in which the principal
must be maintained, but the earnings may be spent for a public purpose.
Solution
A is true.
reason- fiduciary fund is used in governmental accounting to report on assets held in trust for
others. When financial statements are prepared for fiduciary funds, they are presented using the
economic resources measurement focus and the accrual basis of accounting.