74.Which of the following is not an example of the function of an Agency Fund?
A)Payment of pension benefits to retired government employees
B)Collection of local government sales taxes by the state government
C)Collection of property taxes for the school district by an elected county government official.
D)Periodic distribution by the state government of county sales taxes
75.Which of the following statements is not correct with respect to Agency Funds?
A)Agency funds use modified accrual accounting
B)Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent.
C)Assets are offset by an equal amount of liabilities.
D)Assets and liabilities are recognized at the time the government becomes responsible for the assets.
76.Which of the following is true regarding the financial statements of fiduciary funds?
A)Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows.
B)Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting.
C)Both of the above.
D)Neither of the above.
77.Which of the following is true regarding agency funds?
A)Agency funds report assets and liabilities, but not net assets, revenues or expenses.
B)Agency funds are often used to account for property tax collections by county governments for other governments.
C)Both of the above.
D)Neither of the above.
78.GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, does not apply to which of the following investment types?
A)External investment pools.
B)Open-end mutual funds.
C)Debt securities.
D)Investments of pension funds.
79.Which of the following is true regarding fiduciary funds?
A)Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool.
B)Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities.
C)Both of the above.
D)Neither of the above.
80.The City of Sycamore has investments in bonds. These bonds have an amortized cost of $1,996,000. At year end, the financial press reports a market value of $2,002,000 for these bonds. The original cost of the bonds was $1,992,000. The par value at maturity will be $2,000,000. The amount at which the investments would be reported is:
A)$2,002,000
B)$2,000,000
C)$1,996,000
D)$1,992,000
81.According to GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, 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.
82.The tax agency fund of Orange County collected $7,000,000 for a school district, $3,000,000 for the county General Fund, and $5,000,000 for a municipality located in the County. County General Fund employees handle the collections, and a 2.5 percent collection fee is charged all units except the county. The total amount of revenue recognized by the county General Fund would be:
A)$ 390,000.
B)$3,300,000.
C)$3,390,000.
D)$15,300,000.
83.Which of the following is true regarding accounting for investments by state and local governmental units?
A)Investments in all securities with determinable fair values (including bonds held to maturity) are to be reported at fair value.
B)Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Assets.
C)Both of the above.
D)Neither A nor B above.