Question: 1 The principal and earnings of a gift held in

1. The principal and earnings of a gift held in a trust that can be spent for the college education of the children of deceased policemen should be accounted for in which of the following funds? a. Permanent Fund
b. Special Revenue Fund
c. Investment Trust Fund
d. Private Purpose Trust Fund
2. In what way can the amounts in an Investment Trust Fund be invested?
a. Any way the government that operates the fund wishes
b. Only in corporate stocks and bonds
c. Only as provided in the trust agreement
d. Only in governmental bonds
3. To what type of account are contributions to a Pension Trust Fund usually credited?
a. A revenue account
b. An expenditure account
c. An additions account
d. A net position account
4. Which account in a Private Purpose Trust Fund should be credited for the proceeds on the sale of an investment that exceeds its book value?
a. Cash
b. Accounts payable
c. Investments
d. Additions
5. Financial statements for a Pension Trust Fund
a. are included in a government’s annual financial report.
b. are categorized as governmental fund financial statements.
c. are included with the General Fund for financial reporting purposes.
d. are included with a Special Revenue Fund for financial reporting purposes.

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  • CreatedDecember 30, 2014
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