Governmental Accounting Funds

Question 1

An investment trust fund

Answer 1

A fiduciary fund used to account for the external portion of investment pools reported by a sponsoring government.

Question 2

Private-purpose trust fund

Answer 2

A fiduciary fund used to manage the principal and interest earned from individual, nonprofit, or other governments’ donations that are targeting a specific private class

Question 3

Custodial fund

Answer 3

A fiduciary fund used in scenarios where the government is simply acting as a collection and disbursement agent

Question 4

Pension Trust Fund

Answer 4

A fiduciary find used to account for pension and employee benefit funds for which the governmental unit is a trustee