Question

For each of the following descriptive phrases, indicate the type of fund from the list. A. Governmental funds B. Proprietary funds C. Fiduciary funds ________ 1. Includes permanent funds held in trust to be used for public purposes ________ 2. Sometimes referred to as self-supporting or business-like funds ________ 3. Any fund held by a government in a custodial or trustee relationship for an external party ________ 4. Used when the government collects taxes or amounts to be invested for external parties ________ 5. Enterprise and internal service funds

Answer 1

1. A
2. B
3. C
4. C
5. B

Step-by-step explanation:

1. Government Funds: Include permanent funds held in trust to be used for public purposes
2. Proprietary Funds: Sometimes referred to as self-supporting or business-like funds
3. Fiduciary Funds: Any fund held by a government in a custodial or trustee relationship for an external party
4. Fiduciary Funds: Used when the government collects taxes or amounts to be invested for external parties
5. Proprietary Funds: Enterprise and internal service funds