Fiduciary activities are reported only in the fiduciary fund financial statements; they have no effect on the governmental or business-type activities of the primary government reported in the government-wide financial statements.

Question

Quizplus · Accepted Answer

Fiduciary activities are reported separately in fiduciary fund financial statements because they involve holding assets in trust for the benefit of others, rather than for the direct benefit of the government or its business-type activities. Therefore, they do not impact the government-wide financial statements, which focus on the primary government's overall financial position and results of operations.

Fiduciary Activities Are Reported Only in the Fiduciary Fund Financial