Which of the following is true regarding the fiduciary fund financial statements?
A) Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
B) Fiduciary fund financial statements include the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position.
C) Fiduciary fund financial statements reflect equity as reserved and unreserved.
D) Agency funds are reported only on the Statement of Changes in Fiduciary Net Position.

Question

Quizplus · Accepted Answer

The fiduciary fund financial statements include the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. Option A is incorrect because fiduciary fund financial statements are prepared using the economic resources measurement focus and full accrual basis of accounting. Option C is incorrect because fiduciary funds do not reflect equity, they reflect net position. Option D is incorrect because agency funds are not reported in the financial statements of the government, but rather in the custodial funds statements of the administering agency.

Which of the Following Is True Regarding the Fiduciary Fund