ExpertMedium1 markMultiple Choice
CPA · Question 11 · Area I: Financial Reporting
Under GASB standards, which of the following is a required financial statement for a Fiduciary Fund?
Under GASB standards, which of the following is a required financial statement for a Fiduciary Fund?
Answer options:
A.
Statement of Cash Flows
B.
Statement of Revenues, Expenditures, and Changes in Fund Balances
C.
Statement of Changes in Fiduciary Net Position
D.
Statement of Activities
How to approach this question
Memorize the required statements for each fund type. Fiduciary funds use 'Net Position' terminology but do NOT produce a Cash Flow statement (unlike Proprietary funds).
Full Answer
C.Statement of Changes in Fiduciary Net Position✓ Correct
C
Fiduciary funds (Pension trusts, Investment trusts, Private-purpose trusts, Custodial funds) require two statements: 1) Statement of Fiduciary Net Position, and 2) Statement of Changes in Fiduciary Net Position. They do not prepare a Cash Flow statement.
Common mistakes
Confusing Fiduciary with Proprietary funds (which do require Cash Flows).
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