106.Which of the following is true regarding the reporting of investments by state and local governmental units?
A)Investments, for which a determinable fair value can be obtained, are to be reported at fair value.
B)Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Position).
C)Both of the above.
D)Neither of the above.
107.An endowment to support scholarships would most likely be accounted for in which of the following fund types?
A) Agency Fund.
B) Investment Trust Fund.
C) Private-Purpose Trust Fund.
D) None of the Above.
108.Investments of internal investment pools are to be reported in:
A)The funds providing the resources for the investments.
B)An investment trust fund.
C)An agency fund.
D)Either A and B.
109.Jasper City is trustee for the Henry J. Moooney Endowment Fund, created to provide scholarships for students. This is an example of which type of fund?
A)Permanent.
B)Pension trust.
C)Agency.
D)Private-purpose trust.
110.A county treasurer maintains an investment pool in which several different towns in the county hold investments. Where should the towns’ investments be recorded?
A)Investment Trust Fund.
B)Agency Fund.
C)Private-purpose Trust Fund.
D)None of the above.
111.An employee enrolls in a pension plan that will pay out 3% of the employee’s average salary for the last 3 years for each year of service that the employee worked. What type of pension plan does the employee have?
A)Defined Contribution Plan.
B)Normal Payout Plan.
C)Defined Benefit Plan.
D)None of the above.
112.The “external portion” of an investment trust fund relates to…
A)The portion of the investment that legally belongs to the sponsoring government.
B)The portion of the investment that is allocated among the sponsoring government’s funds.
C)The portion of the investment that belongs to other participating governments.
D)“External portion” relates only to agency funds, not investment trust funds.
113.Which of the following statements regarding employer reporting of pension trust funds is
not
correct?
A) Contributions by the governmental funds are recorded as expenditures in the General Fund.
B) The net pension liabilities are reported in the government-wide statements.
C) The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statements
D) Governmental funds report net pension liabilities of governmental fund employees as a fund liability.
114.A government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability. Assuming the estimated of this liability increases, how will this be reflected in the government-wide statements?
A) As an increase in the net pension liability and an expense.
B) As an increase in the net pension liability and a deferred outflow of resources.
C) As an increase in the net pension liability and an intangible asset.
D) None of the above, changes in estimated are not recorded.
115.Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?
A)Private-purpose Trust Fund.
B)Permanent Fund.
C)Pension Fund.
D)Agency Fund.