Question

Most investment trust funds distribute investment earnings and changes in investment values on a daily basis.

True or False

A custodial fund should be used to account for special assessment billing and collection, and related debt service of special assessment debt, if the government has no responsibility for the debt.

True or False

The GASB requires disclosures related to three types of credit risk.

True or False

It is common for a government that collects taxes on behalf of other governments to be authorized to withhold a certain percentage from the collections for each government.

True or False

Trust funds should utilize the accrual basis of accounting.

True or False

When an investment pool is created, the assets of each fund entering the pool should be transferred to the pool at their fair value at the date of the transfer.

True or False

When one participant in an investment pool withdraws part of its equity from the pool, that participant’s proportionate interest is decreased and all other participants’ proportionate interest is increased.

True or False

Accounting for other postemployment benefits is similar to accounting for defined contribution pension plans.

True or False

In regard to pass-through grants, a recipient government has administrative involvement if it is responsible for filing paperwork under a grant agreement.

True or False

A government needs to establish an investment policy for its investment trust fund to ensure compliance with the GASB standards.

True or False

Answer 1

Most investment trust funds distribute investment earnings and changes in investment values on a daily basis.

True

A custodial fund should be used to account for special assessment billing and collection, and related debt service of special assessment debt, if the government has no responsibility for the debt.

True

The GASB requires disclosures related to three types of credit risk.

False

It is common for a government that collects taxes on behalf of other governments to be authorized to withhold a certain percentage from the collections for each government.

False

Trust funds should utilize the accrual basis of accounting.

True

When an investment pool is created, the assets of each fund entering the pool should be transferred to the pool at their fair value at the date of the transfer.

True

When one participant in an investment pool withdraws part of its equity from the pool, that participant’s proportionate interest is decreased and all other participants’ proportionate interest is increased.

False

Accounting for other postemployment benefits is similar to accounting for defined contribution pension plans.

False

In regard to pass-through grants, a recipient government has administrative involvement if it is responsible for filing paperwork under a grant agreement.

True

A government needs to establish an investment policy for its investment trust fund to ensure compliance with the GASB standards.

True