1. The principal and earnings of a gift held in a trust that can be spent for...

Question:

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 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.
c. Investments
d. Additions
5. for a Pension Trust Fund
a. are included in a government’s annual financial report.
b. are categorized as governmental fund
c. are included with the General Fund for financial reporting purposes.
d. are included with a Special Revenue Fund for financial reporting purposes.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...