Question

Fiduciary funds are

A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
C. Funds used to account for monies held by the government in a trustee capacity.
D. Funds used to account for all financial resources except those required to be accounted for in another fund.
E. Funds used to account for revenues that have been legally restricted as to expenditure.

Answer 1

Fiduciary funds refer to monies held by the government in a trustee capacity, often used for specific programs like Medicare and Social Security.

Step-by-step explanation:

Fiduciary funds are C. funds used to account for monies held by the government in a trustee capacity. These are special accounts utilized to manage specific types of expenditures, where the government acts as a trustee for certain programs, such as Medicare and Social Security. The funds in these accounts, like the FICA taxes collected from individuals, are invested in trust or government securities until they are needed to be paid out.

Fiduciary funds are funds used to account for monies held by the government in a trustee capacity. These funds are created when the government holds and manages funds on behalf of individuals, organizations, or other governments. Examples of fiduciary funds include trust funds, agency funds, and pension funds. The government acts as a fiduciary, meaning it has a legal obligation to manage these funds in the best interest of the beneficiaries.