Question

1.) A government establishes an Investment Trust Fund. During the year, it receives $500,000 from other separate legal entities to invest. The Investment Trust Fund should report this activity in the statement of changes in net assets as

Select one:

a. Revenues

b. Other financing sources

c. Additions

d. Should not be reported

2.) A government receives a bequest of $300,000 to establish an endowment fund whose income is to be used to support scholarships for local high school students. The school district is not part of the government. The government should report this activity in which type of fund?

Select one:

a. Permanent Fund

b. Private-purpose Trust Fund

c. Investment Trust Fund

d. Agency Fund

Answer 1

11 Amount revived as an investment in investment trust fund should be freated as an addition to the changes in not assets, so * That creceipt is treated as an in rease in investments. 2) at should be treated as and reported in private purpose trust fund. It is created for the purpose school studends and school district is not part of the government SP - 2d P & linga de ud ting of doom mit b arvel PP Suro - umot napig pihdon