In an agency fund,assets are equal to:

Question

Quizplus · Accepted Answer

In an agency fund, the assets are held by the government entity in a fiduciary role for the benefit of another party. Therefore, the assets recorded in an agency fund only represent amounts held for the benefit of the party for which the funds are being held. The assets are not owned by the government entity, meaning that they should not be included in the government's net assets. Therefore, in an agency fund, assets are equal to liabilities, but not net assets (which would be assets minus liabilities).

In an Agency Fund,assets Are Equal To