Question

Select all that apply

Criteria for fiduciary activities include ______.

-government custody of assets or the ability to direct their use for the benefit of others
-assets that are derived from the government's own-source revenue
-an agreement in which the government has direct administrative or financial involvement
-a trust agreement in which the government is not the beneficiary and assets are protected from its creditors

Answer 1

Fiduciary activities criteria include government custody or control of assets for others' benefit, direct administrative or financial involvement in agreements, and trust agreements where the government is not a beneficiary protects the assets from its creditors.

Step-by-step explanation:

The criteria for fiduciary activities include several specific elements that define when a government is acting in a fiduciary capacity. Not all activities a government engages in will meet these criteria. The conditions for fiduciary activities are:

• Government custody of assets or the ability to direct their use for the benefit of others.
• An agreement in which the government has direct administrative or financial involvement.
• A trust agreement in which the government is not the beneficiary and assets are protected from its creditors.

These activities are separate from the government’s own-source revenue which is based on its governmental functions such as taxation or investment earnings. Instead, fiduciary activities represent a stewardship role where the government has the responsibility to manage assets for the benefit of parties outside of the government itself.