Governmental funds are identical to governmental activities, proprietary funds are identical to business-type activities, and fiduciary funds are identical to fiduciary activities of a government.

Question

Quizplus · Accepted Answer

While governmental funds are used to account for general government activities and proprietary funds are used to account for business-type activities, fiduciary funds are used to account for assets held by a government in a trustee or agency capacity. Therefore, fiduciary funds are not identical to fiduciary activities of a government.

Governmental Funds Are Identical to Governmental Activities, Proprietary Funds Are