FAR 6

Question 1

FAR 6

What fund type should be used to account for collection and servicing activities?

Answer 1

If not obligated in any manner, it should be reported in an agency fund to reflect the fact that the government’s duties are limited to acting as an agent for the assessed property owners and bondholders.

Question 2

FAR 6

Routine employer contributions from the general fund to a pension fund should be recorded as a?

Answer 2

Expenditure in the unit’s general fund, since the general fund bears the cost of funding the pension plan.

Question 3

FAR 6

Debt service transactions of a special assessment issue for which the governemnt is NOT obliated in any manner should be reported in?

Answer 3

Agency fund.

Question 4

FAR 6

Taxes collected and held by a county for a separate school district would be accounted for in the?

Answer 4

Agency fund.

Question 5

FAR 6

What should be recorded in the general fund?

Answer 5

All financial resources except those required to be accounted for in anpother fund (e.g. unrestricted state grant).

Question 6

FAR 6

Sales taxes collected by a county to be distributed to other governments shoul be recorded in the?

Answer 6

Agency fund.

Question 7

FAR 6

Forefture act cash confiscated from illegal activities should be recorded in the?

Answer 7

Special revenue fund, since the govt is agreeing to accept cash and spend it in a specified way.

Question 8

FAR 6

The debt service transactions of a special assessment bond issue for which the government is NOT obligated in any manner should be reported in the?

Answer 8

Agency fund.

Question 9

FAR 6

Wht kind of fund is an enterprise fund?

Answer 9

Proprietary fund.

Question 10

FAR 6

For an investment trust fund, the required financial statements are?

Answer 10

A statement of fiduciary net postion (balance sheet) and statement of changes in fiduciary net postion (income statement)

Question 11

FAR 6

Transactions between the fiduciary funds and governmental and proprietary funds are handled

Answer 11

as if the fiduciary fund, was administered by a separate trustee.

Question 12

FAR 6

Government funds do not

Answer 12

record expenses

Question 13

FAR 6

The private purpose fund is the designated fund for reporting all other trust agreements under which principal and income are for the benefit of one of the following:

Answer 13

Specific individuals. Private organizations, other governments.