Agency fund assets are offset by liabilities equal in amount, so no fund equity exists.

Name: Agency fund assets are offset by liabilities equal in amount, so no fund equity exists.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent. Agency fund assets are offset by liabilities in equal amount; no fund equity exists. Agency fund assets and liabilities are to be recorded at the time the government become responsible for the assets.

Agency Fund Assets Are Offset by Liabilities Equal in Amount