A trust fund of Bruge City received $100,000 from a donor during the year ended June 30,2009.During the year ended June 30,2009,$94,000 of the cash received was used to provide food and clothing to the city's poor.How should the trust fund report these resource flows on its statement of changes in fiduciary net assets for the year ended June 30,2009?

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Quizplus · Accepted Answer

The trust fund should report the $100,000 as a contribution and the $94,000 as deductions for benefits. This is because the trust fund is a fiduciary, meaning it holds assets for the benefit of others. In this case, the trust fund received a donation and used it to provide food and clothing to the city's poor. The $100,000 should be reported as a contribution, which is an increase in net assets resulting from a transfer of resources to the trust fund. The $94,000 should be reported as deductions for benefits, which are decreases in net assets resulting from the provision of goods and services to the beneficiaries of the trust fund.

A Trust Fund of Bruge City Received $100,000 from a Donor