Which of the statements concerning agency funds is true?

Question

Quizplus · Accepted Answer

Agency funds are a type of fiduciary fund that account for assets held by a government in a trustee capacity for individuals, organizations, or other governments. They are reported only on the statement of fiduciary net position, which reports the assets, liabilities, and net position of the government's fiduciary funds. Agency funds use the same basis of accounting as general funds and special revenue funds (modified accrual basis) and use the temporary accounts Cash and Investments (assets) and Due to/Due from Other Funds (liabilities). They can receive cash, such as taxes or fees collected on behalf of another entity.

Which of the Statements Concerning Agency Funds Is True