According to the GASB, control of an asset means the government must have the as

Question

According to the GASB, control of an asset means the government must have the asset in its possession.

True or False

By definition a fiduciary fund that does not meet the definition of a trust fund is a custodial fund.

True or False

Resources that are held in trust for the benefit of the government’s own programs or its citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

True or False

Each trust fund type must be reported in its own column on the fiduciary fund financial statements.

True or False

Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements.

True or False

Investment trust funds and pension trust funds should be accounted for in the same manner as permanent funds.

True or False

Explanation / Answer

Standard setters that provide further guidance on control also agree that ownership, possession or legal enforceability are indicators of control but do not necessarily confirm control of an asset, so the answer would be True True, Activities meeting the definition of fiduciary in nature but that lack a formal trust agreement will in the future be reported as custodia fund True, permanent funds are used for such accounts True, Each trust fund type must be reported in its own column on the fiduciary fund financial statements. True, Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements False, Investment trust funds and pension trust funds should not be accounted for in the same manner as permanent funds.

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