A city establishes a fund to accumulate resources that will be used to provide a college education to the children of police or fire personnel who die as a result of job-related activities. The resources are placed in a trust in which the assets are protected from the government's creditors. Which of the following funds should be used to account for this activity?

Question

Quizplus · Accepted Answer

Private-Purpose Trust Funds are used to report all fiduciary activities that are not required to be reported in Pension (and other employee benefit) Trust Funds or Investment Trust Fund if the resources are held in a trust that meets certain criteria including the assets being protected from the government's creditors. It should be noted that the assets in the trust do not benefit the city.

A City Establishes a Fund to Accumulate Resources That Will