The main difference between an agency fund and a trust fund is:

Question

Quizplus · Accepted Answer

An agency fund is designed to account for assets held by a government or organization in a trustee capacity for a designated purpose, but without direct financial interest in the assets themselves. Meanwhile, a trust fund accounts for assets held by a government or organization in a trustee capacity where the government or organization has a financial interest in the assets. Therefore, choice B is the correct option as it accurately describes an agency fund.

The Main Difference Between an Agency Fund and a Trust