Which of the following transactions should the City of Highland account for in a trust fund?
A) General fund contributions received by the city pension plan.
B) Greens fees received from golfers at the city-owned golf course.
C) Grants received from the Federal government to purchase buses to be used for public transit.
D) Proceeds of bonds issued to construct a new city hall building.

Question

Which of the following transactions should the City of Highland account for in a trust fund? 
A) General fund contributions received by the city pension plan.
B) Greens fees received from golfers at the city-owned golf course.
C) Grants received from the Federal government to purchase buses to be used for public transit.
D) Proceeds of bonds issued to construct a new city hall building.

Quizplus · Accepted Answer

General fund contributions received by the city pension plan should be accounted for in a trust fund because these contributions are intended to benefit specific groups (e.g., city employees) and are held in trust by the city to fund pension obligations.

Which of the Following Transactions Should the City of Highland