Question

Which of the following activities would likely be accounted for in a fiduciary fund?

a) A retirement plan for city employees.
b)The city provides debt service for special assessment bonds for which the city assumes secondary responsibility for repayment.
c) An endowed contribution is received for which earnings will be used to help maintain the city's parks.
d) All of the above; that is, all of the above activities would be accounted for in a fiduciary fund.

Answer 1

All of the above activities would be accounted for in a fiduciary fund.

Step-by-step explanation:

The correct answer is d) All of the above; all of the activities mentioned would be accounted for in a fiduciary fund.

A fiduciary fund is a type of accounting fund used by government entities to account for assets held in a trustee capacity. This includes activities such as managing retirement plans for employees (option a), providing debt service for special assessment bonds (option b), and receiving endowed contributions for specific purposes, such as park maintenance (option c).