Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) Unless use of an agency fund is mandated by law, by GASB standards, or by decision of the governing board, an agency relationship may be accounted for within governmental and/or proprietary funds.
B) Escheat property generally should be reported as an asset in the governmental or proprietary fund to which the property ultimately reverts.
C) GASB has proposed a new category of fiduciary fund; the custodial fund which would be used exclusively for escheat property held by the government.
D) An agency fund accounts for assets held by a government temporarily as agent for individuals, organizations, or other governmental units.