Question

In which of the following circumstances would it be inappropriate to report the assets in the fiduciary fund financial statements?

a. When assets are held for other funds of the same government.
b. When assets are held for Internal Revenue Code Section 457 deferred compensation plans.
c. When assets are held for the families of the government's police officers killed in the line of duty.
d. When assets are held for other governments in an investment pool.

Answer 1

In the given options, it would be inappropriate to report the assets in the fiduciary fund financial statements when they are held for other funds of the same government.

Step-by-step explanation:

The correct answer is a. When assets are held for other funds of the same government. In fiduciary fund financial statements, assets should be reported when they are held for the benefit of individuals, other governments or other entities. In the given options, only option a involves assets held for other funds of the same government, which would not be reported in the fiduciary fund financial statements.