In an agency fund,assets are equal to:

Question

Quizplus · Accepted Answer

In an agency fund, assets are held and administered by the government on behalf of other entities, such as individuals or other governments. Therefore, the assets held in an agency fund do not belong to the government itself and are not part of its net position. The government only holds the assets as a custodian or trustee. The liabilities in an agency fund represent the amounts owed to the individuals or entities for whom the government is holding the assets. Therefore, the assets in an agency fund are equal to the liabilities.

In an Agency Fund,assets Are Equal To