Which of the following is a characteristic of an Agency Fund's financial reporting?
A)Its statement of fiduciary net position shows assets,liabilities,and fund balance
B)Its statement of fiduciary net position shows no net position
C)Its statement of fiduciary net position shows no liabilities
D)Its statement of fiduciary net position shows no assets

Question

Quizplus · Accepted Answer

An Agency Fund's financial reporting should show no net position, as the fund does not have ownership of the assets or liabilities held within it. The fund exists only to account for assets held on behalf of others. Therefore, choice B is the correct characteristic of an Agency Fund's financial reporting.

Which of the Following Is a Characteristic of an Agency