Fiduciary funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit, including individuals, organizations, and other governmental units. For this reason, fiduciary funds are often identified in governmental financial reports as Trust and Agency Funds.

Question

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Fiduciary funds are often identified in governmental financial reports as Trust and Agency Funds because fiduciary funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit, including individuals, organizations, and other governmental units.

Fiduciary Funds Are Used to Account for Assets Held by a Government