116.A ___________ is used when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.
A)Investment Trust.
B)Private-Purpose Trust.
C)Pension Trust.
D)Employee Benefit Trust.
117.A private-purpose trust fund where the principal is not expendable, normally it is called a/an:
A) Donation.
B)Endowment.
C)Gift.
D)Transfer.
118.Investment Trust Funds are restricted to:
A)External investment pools.
B)Open-end mutual funds.
C)Debt securities.
D)All the above.
119.When preparing financial statements, the internal portion of investment pools would be reported under which fund?
A)Investment trust fund.
B)Private purpose trust fund.
C)Permanent fund.
D) The fund(s) providing the resources.
120.Fiduciary Funds are
not
included in the Government-wide Financial Statements because:
A) These Funds use the modified accrual basis of accounting.
B) The resources are not available to the reporting unit.
C) The government doesn’t keep track of these types of funds.
D) These funds do not have a material effect on the financial statements.
121.Investments in a private-purpose trust fund should generally be reported using:
A) Cost Basis.
B) Fair Market Value.
C) Equity Method.
D) None of the above.
122.Which fund is used when a contributor specifies that the income of trust assets be used for the benefit of the general citizenry?
A) Private-purpose trust fund.
B) Agency fund.
C)Investment trust fund.
D) Permanent fund.
123.Which of the following statements is
notcorrect with respect to GASB Statement No. 53 which establishes reporting requirements for governments entering into derivative instruments?
A)Derivatives include swaps, options, forward contracts and future contracts.
B)If a derivative is effective in reducing a government’s exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.
C)If a hedge derivative is deemed ineffective it is classified as investment purpose.
D)Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements.
124.Which of the following statements is correct with respect to GASB Statement No. 53 which establishes reporting requirements for governments entering into derivative instruments?
A)Changes in the value of hedge derivatives are deferred and reported in the Statement of Net Position.
B)If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the Statement of Net Position.
C)Statement No. 53 does not apply to proprietary funds.
D)Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.
125.GASB Statement No. 52 requires endowments with investment real estate to report those assets at:
A)Historical cost
B)Fair market value
C)Historical cost net of related debt
D)Market value net of related debt