Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?

Question

Quizplus · Accepted Answer

Examining the aggregate of factors, such as the enactment that brought the relationship into existence and regulations under which it operates, is the most reliable means of distinguishing a trust relationship from an agency relationship. This approach takes into account the legal and regulatory framework surrounding the relationship, rather than relying solely on the wording of agreements or the duration of the relationship. Contacting the GASB or examining the wording of agreements may provide useful information, but may not be the most reliable or comprehensive means of making this determination.

Which of the Following Is the Most Reliable Means of Distinguishing