Which of the following is true regarding the fiduciary fund financial statements?
A) Fiduciary fund financial statements include the Statement of Fiduciary Net Assets and Statement of Changes in Fiduciary Net Assets.
B) Fiduciary fund financial statements are prepared using the current financial resources measurement focus and modified accrual basis of accounting.
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 Assets.

Question

Quizplus · Accepted Answer

Fiduciary fund financial statements include both the Statement of Fiduciary Net Assets and the Statement of Changes in Fiduciary Net Assets, which report on the fund's assets and liabilities as well as any changes that occur during the reporting period.

B is incorrect because fiduciary funds use the economic resources measurement focus and accrual basis of accounting, rather than the current financial resources measurement focus and modified accrual basis of accounting typically used by governmental funds.

C is incorrect because fiduciary fund financial statements reflect assets and liabilities, not equity.

D is incorrect because agency funds are excluded from fiduciary fund financial statements altogether, as they are not considered a separate fund type.

Which of the Following Is True Regarding the Fiduciary Fund