Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Question

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Answer 1

Question

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

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Answer 2

Question

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

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Answer 3

Question

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

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Answer 4

Question

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

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Answer 5

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

Answer 6

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.

Answer 7

Chapter 8, Problem 1Q

To determine

Distinguish between the agency funds and trust funds and identify the financial statements that are prepared for each.

Answer 8

Expert Solution & Answer

Explanation of Solution

Under the GASB standards, agency funds are identified as fiduciary funds which are not reported as one of the three types of the trust funds. These funds hold the assets which benefits the individuals, private organizations, or other governments other than the reporting government.

Agency funds are reported in a distinct column of the “statement of fiduciary net position” and “the statement of changes in fiduciary net position”.

Fiduciary funds further classified into trust funds. It includes three types of the trust funds. They are investment trust funds, private purpose trust funds, and pension trust funds. These funds are created to tally for the assets obtained by the government in a trust agreement in which the assets are to be invested to produce income used for the specific purpose.

Trust funds are reported in “the statement of fiduciary net position” and “the statement of changes in fiduciary net position”. Trust funds are reported in separate columns by their nature and type.