Accounting for Governmental and

Nonprofit Entities 17th Edition Reck

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 Chapter 08

Accounting for Fiduciary Activities-Agency and Trust Funds

True / False Questions

1. In accounting practice, the legalistic distinctions between trust funds and agency funds are
not of major significance.

True False

2. Trust funds often exist over a longer period of time than agency funds, represent and develop
vested interests of a beneficiary to a greater extent, and involve more complex administration
and financial accounting and reporting.

True False

3. Fiduciary funds are sometimes identified in the annual reports of state and local governments
as "Ancillary Funds."

True False

4. Resources that are held in trust for the benefit of the government's own programs or its
citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

True False

5. Agency funds are used only if a government holds resources in a purely custodial capacity for
others.

True False

8-1
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6. Assets that are held in an agency fund belong to the party or parties for which the
government acts as agent; however, the government retains legal right of ownership in the
event of party's bankruptcy.

True False

7. The collection of taxes or other revenues by one government for several of the funds it
operates and for other governments often results in the creation of a trust fund.

True False

8. It is common for an agency fund to have relatively small net position balances.

True False

9. An agency fund should be used to account for special assessment billing and collection, and
related debt service of special assessment debt, if the government has no responsibility for
the debt.

True False

10. It is common for a government that collects taxes on behalf of other governments to be
authorized to withhold a certain percentage from the collections for each government.

True False

11. In regard to pass-through grants, a recipient government has administrative involvement if it

is responsible for filing paperwork under a grant agreement.

True False

12. When an investment pool is created, the assets of each fund entering the pool should be
transferred to the pool at their fair value at the date of the transfer.

True False

8-2
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13. Investment trust funds and pension trust funds should be accounted for in the same manner
as permanent funds.

True False

14. Agency funds should utilize the modified accrual basis of accounting.

True False

15. Trust funds should utilize the accrual basis of accounting.

True False

16. Pension trust funds should utilize budgetary accounts in the same manner that General
Funds and special revenue funds do.

True False

17. Fiduciary activities are reported only in the fiduciary fund financial statements; they have no
effect on the governmental or business-type activities of the primary government reported in
the government-wide financial statements.

True False

18. Earnings on pooled investments and changes in fair value of investments are allocated to the
participants having an equity interest in the pool in proportion to their relative contributions
to the pool.

True False

19. Most investment trust funds distribute investment earnings and changes in investment
values on a daily basis.

True False

8-3
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20. A common example of a private-purpose trust fund is a state-sponsored 529 savings plan,
structured such that parents make after-tax contributions to an investment fund managed by
the state government.

True False

21. A defined benefit plan specifies the amount or rate of contribution that the employer and
employees must contribute to benefit the members' accounts in the pension plan.

True False

22. Other postemployment benefits (OPEB) include benefits other than pensions, such as health
care, life insurance, and long-term care.

True False

23. GASB standards provide comprehensive guidance on pension accounting and financial
reporting for defined benefit pension plan employers, but the FASB provides guidance for
plan sponsors.

True False

24. When one participant in an investment pool withdraws part of its equity from the pool, that
participant's proportionate interest is decreased and all other participants' proportionate
interest is increased.

True False

25. Defined benefit pension plans are classified as either single-employer pension plans or
multiple-employer pension plans.

True False

Multiple Choice Questions

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26. Each of the following are reported as fiduciary funds except:

A. A permanent fund.
B. An investment trust fund.
C. An agency fund.
D. A private-purpose trust fund.

27. Which of the following statements regarding the financial reporting of agency funds is not
true?

A. Agency activities are reported only in the fiduciary fund financial statements.
B. Agency fund financial information is reported in a separate column of the government-
wide statement of activities.
C. Trust funds are included in the statement of changes in fiduciary net position.
D. GASB standards allow disclosure of the assets and liabilities of agency funds in a separate
column of the statement of fiduciary net position.

28. Which of the following is the most reliable means of distinguishing a trust relationship from
an agency relationship for purposes of deciding which type of fiduciary fund should be used?

A. Examine the applicable documents and contact the GASB for a determination letter.
B. Examine the aggregate of factors, such as the enactment that brought the relationship into
existence and regulations under which it operates.
C. Examine the length of time assets will be held; agency relationships are generally in
existence longer than trust relationships.
D. Examine the wording of any agreements to determine if the word "trust" or "agency" is
used.

8-5
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29. Which of the following activities would most appropriately be recorded by a trust fund?

A. Donations collected for improvements to the public library.

B. Deposits held for customers of a municipal-owned electric utility.
C. Assets held for investment, the earnings from which are used for maintenance of the City
Cemetery.
D. Assets held for college scholarships to be awarded to the children of police officers.

30. Billing and collection of special assessments and payment of debt principal and interest on
special assessment debt for which the city is not obligated in any manner should be recorded
in a(an):

A. Debt service fund.

B. Special assessment fund.
C. Capital projects fund.
D. Agency fund.

31. If special assessment receivables are recorded in the accounts of an agency fund, the
appropriate account(s) to credit upon receipt of assessments from property owners will
include:

A. Contributions to Net Position.

B. Revenues and Deferred Revenues.
C. Due to Special Assessment Bondholders.
D. Interfund Transfers In.

8-6
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32. A city will serve as a conduit for federal grant money which is sent to the city by the state
government and must be remitted to various not-for-profit organizations who will use the
money. The ultimate allocation of the money is decided by the state government. Which of
the following terms describes the nature of this grant?

A. Agency grant.
B. Fiduciary grant.
C. Pass-through grant.
D. Partial grant.

33. Which of the following activities would most appropriately be recorded by an agency fund?

A. Donations collected for improvements to the public library.

B. Deposits held for customers of a municipal-owned electric utility.
C. Taxes collected by a county government on behalf of cities within the county.
D. Assets held for college scholarships to be awarded to the children of police officers.

34. Which of the following accounts is least likely to be used by a tax agency fund?

A. Cash.
B. Revenues.
C. Taxes receivable for other funds.
D. Due to other governments.

35. When a cash and investment pool of a certain city was established, the debt service fund
transferred investments to the pool having a cost of $3,000,000 but a current fair market
value of $3,100,000. To record this transaction, the journal entry made by the debt service
fund will include:

A. A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.

B. A credit to Revenues—Change in Fair Value of Investments in the amount of $100,000.
C. A debit to Investments in the amount of $3,000,000.
D. A credit to Investments in the amount of $3,100,000.

8-7
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36. When a cash and investment pool of a certain city was established, the debt service fund
transferred investments to the pool having a cost of $3,000,000 but a current fair market
value of $2,900,000. To record this transaction, the journal entry made by the debt service
fund will include:

A. A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.

B. A debit to Revenues—Change in Fair Value of Investments in the amount of $100,000.
C. A debit to Investments in the amount of $2,900,000.
D. A credit to Investments in the amount of $100,000.

37. The cash and investment pool of Lake City allocates dividends, interest, and capital gains
and losses on a periodic basis. When the cash and investment pool accrues interest earned
on investments in debt securities, pending allocation to participating funds, it would credit
which of the following accounts?

A. Interfund Loans.
B. Revenues.
C. Undistributed Earnings on Pooled Investments.
D. Interfund Receivables.

38. Which of these fiduciary fund types always has zero net position?

A. Agency funds.
B. Pension trust funds.
C. Investment trust funds.
D. Private-purpose trust funds.

39. Which of the statements concerning agency funds is true?

A. Agency funds use the same basis of accounting as permanent funds.

B. Agency funds are reported only on the statement of fiduciary net position.
C. Agency funds use the temporary accounts Additions and Deductions.
D. Agency funds never receive cash.

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40. Which of the following financial statements is prepared by fiduciary funds?

A. Statement of net position.

B. Statement of activities.
C. Statement of cash flows.
D. All of the above.

41. At the government-wide level, where are fiduciary funds reported?

A. In the Governmental Activities column.

B. In the Business-type Activities column.
C. As an internal balance in the total column.
D. Fiduciary funds are not reported at the government-wide level.

42. An investment trust fund is used to report the net position available to the:

A. Sponsoring government only.

B. External participants only.
C. Financial institution that acts as custodian for the fund's investments.
D. All of the above.

43. A local civic group gave the county government $25,000 cash to be used to pay the utility bills
of persons with income below the poverty level. The city should account for the $25,000
contribution in:

A. An investment trust fund.

B. The General Fund.
C. A permanent fund.
D. Private-purpose trust fund.

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44. An Olympic medalist swimmer who grew up in the city contributed $75,000 to the city
stipulating that the money be invested and that the earnings thereon be used for
maintenance of the swimming complex. The $75,000 would most appropriately be recorded in
a(an):

A. Agency fund.
B. A permanent fund.
C. Private-purpose trust fund.
D. Investment trust fund.

45. A statement of cash flows should be prepared for which of the following fiduciary fund types?

A. Fiduciary funds do not provide a statement of cash flows.

B. Agency.
C. Pension trust.
D. Private-purpose trust

46. Which of the following is the appropriate basis of accounting for an agency fund?

A. Cash basis.
B. Modified cash basis.
C. Accrual basis.
D. Modified accrual basis.

47. A donor contributed $500,000 to the city stipulating that the money be invested and that the
earnings thereon be used for maintenance of the a band shell in the city's park. The $500,000
would most appropriately be recorded in a(an):

A. Agency fund.
B. Private-purpose trust fund.
C. Endowment fund.
D. Permanent fund.

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48. Fiduciary funds use a basis of accounting similar to which of the following funds?

A. Permanent funds.
B. Special revenue funds.
C. Enterprise funds.
D. Debt service funds.

49. Which of the following is the appropriate measurement focus for agency funds?

A. Economic resources.
B. Current financial resources.
C. Cash and cash equivalents.
D. Accrual basis.

50. Which of the following activities would be accounted for by a trust fund?

A. Deposits held for customers of a city-owned electric utility.

B. Assets passed-through the state government to the local government.
C. Assets held for special assessment bondholders for which the city has no liability.
D. Assets which are used to assist in the preservation of a private residence.

51. A governmental employer who makes contributions to pension plans for all employees:

A. Reports pension expenditures in a governmental fund in the amount actually contributed.

B. Reports pension expenses in a proprietary fund reflecting changes to the net pension
liability.
C. Recognizes pension costs in the government-wide statements on the accrual basis of
accounting.
D. All of the above.

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52. In financial reporting for proprietary funds and at the government-wide level, the employer's
pension expense for the period is equal to:

A. The employer's contribution.

B. Annual required contribution.
C. Current year benefits, interest on prior pension liabilities, plan changes, amortization of
deferred amounts, and other changes to the net pension liability.
D. All of the above.

53. Which of the following statements is true regarding termination benefits?

A. Voluntary termination benefits occur when employers provide an incentive to hasten an

employee's voluntary termination of employment, such as a one-time payout.
B. Voluntary terminations relate to layoffs or reductions in workforce.
C. Employers incur expenses related to voluntary terminations but not to involuntary
terminations.
D. Expenses related to voluntary terminations may be avoided by hiring replacement
employees within 60 days of the terminations.

54. Other postemployment benefits may include:

A. Health care.
B. Life insurance.
C. Long-term care.
D. All of the above.

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55. In pension accounting, the employer's net pension liability:

A. Is measured as the total pension liability less the amount of fiduciary net position held for
future pension payments.
B. Represents the portion of the present value of projected benefit payments to be provided
through the pension plan to current active and inactive employees that is attributed to
those employees' past periods of service.
C. Is the same as the net pension obligation.
D. Is based on actuarial valuations generally required to be performed at least every five
years.

Short Answer Questions

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56. The following are key terms in Chapter 8 that relate to accounting for pension plans.

A. Agent multiple-employer pension plan

B. Cost-sharing multiple-employer pension plan
C. Covered payroll
D. Defined benefit plan
E. Defined contribution plan
F. Net pension liability
G. Service cost
H. Total pension liability

For each of the following definitions, indicate the key term from the list above that best
matches by placing the appropriate letter in the blank space next to the definition.

_____ 1. A pension plan which specifies the amount or rate of contribution that the employer
and employees must contribute to the members’ accounts in the pension plan.
_____ 2. The portion of the present value of projected benefit payments to be provided
through the pension plan to current active and inactive employees that is attributed to those
employees’ past periods of service.
_____ 3. The portion of the actuarial present value of projected benefit payments that is
attributed to the current year, interest on the total pension liability, benefit payments, and
other changes to the total pension liability.
_____ 4. The pension obligations of many employers are pooled and plan assets can be used
to pay the benefits of the employees of any employer that provides pensions through the
pension plan.
_____ 5. Plan assets of numerous employers are pooled for investment purposes but
accounts are maintained for the individual employer participants.

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Essay Questions

57. If a city has a responsibility for endowed resources, how would city management decide
whether to account for the resources in a permanent fund or a trust fund? How does financial
reporting of the funds differ?

58. Why do agency funds have no fund equity? What classes of accounts are reported in agency
fund financial statements?

8-15
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59. Explain the purpose of the account "undistributed change in fair value of investments" used
in a cash and investment pool.

60. Describe the types of pension plans most often found in governmental entities and the
differences between them.

61. Briefly describe how GASB Statements 67 and 68 compare to prior pension accounting
standards.

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62. Kirby County established a tax agency fund to collect property taxes for the City of Kix, the
City of Denton, and Kirby County School District. Total tax levies of the three governmental
units were $200,000 for the year, of which $60,000 was for the City of Kix, $40,000 for
Denton, and $100,000 for the School District.

The tax agency fund charges a 2% collection fee that it transfers to the General Fund of the
County in order to cover costs incurred for agency fund operations. During the year the tax
agency fund collected and remitted $150,000 of the $200,000 levies to the various
governmental units. Collection fees associated with the $150,000 were remitted to Kirby
County’s General Fund prior to year end.

For the Kirby County Tax Agency Fund prepare the journal entries to record the taxes
collected during the year and the remittances made to participating governments.

8-17
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63. On January 1, Forrester County is holding investments for Tinsel Town valued at $500,000 in
an investment pool, accounted for in an investment trust fund. On January 1, Valley School
District invests $1,500,000 in the pool. Earnings on pooled investments for the six months
ended June 30 totaling $300,000 were received in cash.

1) What percentage interest in the pool is held by the town and the school district?
2) (a) Show the entry in the Investment Trust Fund to record the School District’s investment
in the pool.
(b) Show the entry in the Investment Trust Fund to summarize the collection of interest
for the six-month period.
(c) Show the entry in the Investment Trust Fund to record the distribution of the interest
earned on pooled investments, assuming that the interest will be reinvested by the town and
school district.

8-18
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 Chapter 08 Accounting for Fiduciary Activities-Agency and Trust
Funds Answer Key

True / False Questions

1. In accounting practice, the legalistic distinctions between trust funds and agency funds
are not of major significance.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

2. Trust funds often exist over a longer period of time than agency funds, represent and
develop vested interests of a beneficiary to a greater extent, and involve more complex
administration and financial accounting and reporting.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

3. Fiduciary funds are sometimes identified in the annual reports of state and local
governments as "Ancillary Funds."

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting

8-19
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 Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Fiduciary Funds

4. Resources that are held in trust for the benefit of the government's own programs or its
citizenry should be accounted for using a governmental fund rather than a fiduciary fund.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Fiduciary Funds

5. Agency funds are used only if a government holds resources in a purely custodial capacity
for others.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

6. Assets that are held in an agency fund belong to the party or parties for which the
government acts as agent; however, the government retains legal right of ownership in the
event of party's bankruptcy.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember

8-20
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 Difficulty: 1 Easy
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

7. The collection of taxes or other revenues by one government for several of the funds it
operates and for other governments often results in the creation of a trust fund.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

8. It is common for an agency fund to have relatively small net position balances.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Topic: Accounting for Agency Funds

9. An agency fund should be used to account for special assessment billing and collection,
and related debt service of special assessment debt, if the government has no
responsibility for the debt.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Topic: Accounting for Agency Funds

8-21
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10. It is common for a government that collects taxes on behalf of other governments to be
authorized to withhold a certain percentage from the collections for each government.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Topic: Accounting for Agency Funds

11. In regard to pass-through grants, a recipient government has administrative involvement if

it is responsible for filing paperwork under a grant agreement.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Topic: Accounting for Agency Funds

12. When an investment pool is created, the assets of each fund entering the pool should be
transferred to the pool at their fair value at the date of the transfer.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

8-22
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13. Investment trust funds and pension trust funds should be accounted for in the same
manner as permanent funds.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

14. Agency funds should utilize the modified accrual basis of accounting.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Topic: Accounting for Agency Funds

15. Trust funds should utilize the accrual basis of accounting.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

8-23
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16. Pension trust funds should utilize budgetary accounts in the same manner that General
Funds and special revenue funds do.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

17. Fiduciary activities are reported only in the fiduciary fund financial statements; they have
no effect on the governmental or business-type activities of the primary government
reported in the government-wide financial statements.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-04 Explain the activities of and accounting and financial reporting for commonly used agency
funds.
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Fiduciary Fund Reporting

18. Earnings on pooled investments and changes in fair value of investments are allocated to
the participants having an equity interest in the pool in proportion to their relative
contributions to the pool.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.

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 Topic: Accounting for Trust Funds

19. Most investment trust funds distribute investment earnings and changes in investment
values on a daily basis.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

20. A common example of a private-purpose trust fund is a state-sponsored 529 savings plan,
structured such that parents make after-tax contributions to an investment fund managed
by the state government.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Trust Funds

21. A defined benefit plan specifies the amount or rate of contribution that the employer and
employees must contribute to benefit the members' accounts in the pension plan.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Trust Funds

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22. Other postemployment benefits (OPEB) include benefits other than pensions, such as
health care, life insurance, and long-term care.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Describe accounting for other postemployment benefits plans.
Topic: Other postemployment benefits

23. GASB standards provide comprehensive guidance on pension accounting and financial
reporting for defined benefit pension plan employers, but the FASB provides guidance for
plan sponsors.

FALSE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Trust Funds

24. When one participant in an investment pool withdraws part of its equity from the pool, that
participant's proportionate interest is decreased and all other participants' proportionate
interest is increased.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

8-26
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McGraw-Hill Education.
25. Defined benefit pension plans are classified as either single-employer pension plans or
multiple-employer pension plans.

TRUE

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

Multiple Choice Questions

26. Each of the following are reported as fiduciary funds except:

A. A permanent fund.
B. An investment trust fund.
C. An agency fund.
D. A private-purpose trust fund.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Fiduciary Funds

8-27
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McGraw-Hill Education.
27. Which of the following statements regarding the financial reporting of agency funds is not
true?

A. Agency activities are reported only in the fiduciary fund financial statements.
B. Agency fund financial information is reported in a separate column of the government-
wide statement of activities.
C. Trust funds are included in the statement of changes in fiduciary net position.
D. GASB standards allow disclosure of the assets and liabilities of agency funds in a
separate column of the statement of fiduciary net position.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Fiduciary Fund Reporting

28. Which of the following is the most reliable means of distinguishing a trust relationship
from an agency relationship for purposes of deciding which type of fiduciary fund should
be used?

A. Examine the applicable documents and contact the GASB for a determination letter.
B. Examine the aggregate of factors, such as the enactment that brought the relationship
into existence and regulations under which it operates.
C. Examine the length of time assets will be held; agency relationships are generally in
existence longer than trust relationships.
D. Examine the wording of any agreements to determine if the word "trust" or "agency" is
used.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Fiduciary Fund Reporting

8-28
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McGraw-Hill Education.
29. Which of the following activities would most appropriately be recorded by a trust fund?

A. Donations collected for improvements to the public library.

B. Deposits held for customers of a municipal-owned electric utility.
C. Assets held for investment, the earnings from which are used for maintenance of the
City Cemetery.
D. Assets held for college scholarships to be awarded to the children of police officers.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

30. Billing and collection of special assessments and payment of debt principal and interest
on special assessment debt for which the city is not obligated in any manner should be
recorded in a(an):

A. Debt service fund.

B. Special assessment fund.
C. Capital projects fund.
D. Agency fund.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

8-29
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McGraw-Hill Education.
31. If special assessment receivables are recorded in the accounts of an agency fund, the
appropriate account(s) to credit upon receipt of assessments from property owners will
include:

A. Contributions to Net Position.

B. Revenues and Deferred Revenues.
C. Due to Special Assessment Bondholders.
D. Interfund Transfers In.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

32. A city will serve as a conduit for federal grant money which is sent to the city by the state
government and must be remitted to various not-for-profit organizations who will use the
money. The ultimate allocation of the money is decided by the state government. Which of
the following terms describes the nature of this grant?

A. Agency grant.
B. Fiduciary grant.
C. Pass-through grant.
D. Partial grant.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

8-30
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McGraw-Hill Education.
33. Which of the following activities would most appropriately be recorded by an agency fund?

A. Donations collected for improvements to the public library.

B. Deposits held for customers of a municipal-owned electric utility.
C. Taxes collected by a county government on behalf of cities within the county.
D. Assets held for college scholarships to be awarded to the children of police officers.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Describe the uses for and characteristics of agency funds.
Topic: Agency Funds

34. Which of the following accounts is least likely to be used by a tax agency fund?

A. Cash.
B. Revenues.
C. Taxes receivable for other funds.
D. Due to other governments.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Agency Funds

8-31
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McGraw-Hill Education.
35. When a cash and investment pool of a certain city was established, the debt service fund
transferred investments to the pool having a cost of $3,000,000 but a current fair market
value of $3,100,000. To record this transaction, the journal entry made by the debt service
fund will include:

A. A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.

B. A credit to Revenues—Change in Fair Value of Investments in the amount of $100,000.
C. A debit to Investments in the amount of $3,000,000.
D. A credit to Investments in the amount of $3,100,000.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

36. When a cash and investment pool of a certain city was established, the debt service fund
transferred investments to the pool having a cost of $3,000,000 but a current fair market
value of $2,900,000. To record this transaction, the journal entry made by the debt service
fund will include:

A. A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.

B. A debit to Revenues—Change in Fair Value of Investments in the amount of $100,000.
C. A debit to Investments in the amount of $2,900,000.
D. A credit to Investments in the amount of $100,000.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

8-32
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McGraw-Hill Education.
37. The cash and investment pool of Lake City allocates dividends, interest, and capital gains
and losses on a periodic basis. When the cash and investment pool accrues interest
earned on investments in debt securities, pending allocation to participating funds, it
would credit which of the following accounts?

A. Interfund Loans.
B. Revenues.
C. Undistributed Earnings on Pooled Investments.
D. Interfund Receivables.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

38. Which of these fiduciary fund types always has zero net position?

A. Agency funds.
B. Pension trust funds.
C. Investment trust funds.
D. Private-purpose trust funds.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

8-33
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McGraw-Hill Education.
39. Which of the statements concerning agency funds is true?

A. Agency funds use the same basis of accounting as permanent funds.

B. Agency funds are reported only on the statement of fiduciary net position.
C. Agency funds use the temporary accounts Additions and Deductions.
D. Agency funds never receive cash.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Agency Funds

40. Which of the following financial statements is prepared by fiduciary funds?

A. Statement of net position.

B. Statement of activities.
C. Statement of cash flows.
D. All of the above.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

41. At the government-wide level, where are fiduciary funds reported?

A. In the Governmental Activities column.

B. In the Business-type Activities column.
C. As an internal balance in the total column.
D. Fiduciary funds are not reported at the government-wide level.

AACSB: Knowledge Application

8-34
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

42. An investment trust fund is used to report the net position available to the:

A. Sponsoring government only.

B. External participants only.
C. Financial institution that acts as custodian for the fund's investments.
D. All of the above.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

43. A local civic group gave the county government $25,000 cash to be used to pay the utility
bills of persons with income below the poverty level. The city should account for the
$25,000 contribution in:

A. An investment trust fund.

B. The General Fund.
C. A permanent fund.
D. Private-purpose trust fund.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

8-35
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McGraw-Hill Education.
44. An Olympic medalist swimmer who grew up in the city contributed $75,000 to the city
stipulating that the money be invested and that the earnings thereon be used for
maintenance of the swimming complex. The $75,000 would most appropriately be
recorded in a(an):

A. Agency fund.
B. A permanent fund.
C. Private-purpose trust fund.
D. Investment trust fund.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

45. A statement of cash flows should be prepared for which of the following fiduciary fund
types?

A. Fiduciary funds do not provide a statement of cash flows.

B. Agency.
C. Pension trust.
D. Private-purpose trust

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Fiduciary Fund Reporting

8-36
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McGraw-Hill Education.
46. Which of the following is the appropriate basis of accounting for an agency fund?

A. Cash basis.
B. Modified cash basis.
C. Accrual basis.
D. Modified accrual basis.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Agency Funds

47. A donor contributed $500,000 to the city stipulating that the money be invested and that
the earnings thereon be used for maintenance of the a band shell in the city's park. The
$500,000 would most appropriately be recorded in a(an):

A. Agency fund.
B. Private-purpose trust fund.
C. Endowment fund.
D. Permanent fund.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

8-37
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McGraw-Hill Education.
48. Fiduciary funds use a basis of accounting similar to which of the following funds?

A. Permanent funds.
B. Special revenue funds.
C. Enterprise funds.
D. Debt service funds.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-02 Distinguish among agency funds and trust funds (private-purpose, investment, and pension).
Topic: Fiduciary Funds

49. Which of the following is the appropriate measurement focus for agency funds?

A. Economic resources.
B. Current financial resources.
C. Cash and cash equivalents.
D. Accrual basis.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Agency Funds

50. Which of the following activities would be accounted for by a trust fund?

A. Deposits held for customers of a city-owned electric utility.

B. Assets passed-through the state government to the local government.
C. Assets held for special assessment bondholders for which the city has no liability.
D. Assets which are used to assist in the preservation of a private residence.

AACSB: Knowledge Application

8-38
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
 AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

51. A governmental employer who makes contributions to pension plans for all employees:

A. Reports pension expenditures in a governmental fund in the amount actually

contributed.
B. Reports pension expenses in a proprietary fund reflecting changes to the net pension
liability.
C. Recognizes pension costs in the government-wide statements on the accrual basis of
accounting.
D. All of the above.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Accounting

52. In financial reporting for proprietary funds and at the government-wide level, the
employer's pension expense for the period is equal to:

A. The employer's contribution.

B. Annual required contribution.
C. Current year benefits, interest on prior pension liabilities, plan changes, amortization of
deferred amounts, and other changes to the net pension liability.
D. All of the above.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium

8-39
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McGraw-Hill Education.
 Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Accounting

53. Which of the following statements is true regarding termination benefits?

A. Voluntary termination benefits occur when employers provide an incentive to hasten an

employee's voluntary termination of employment, such as a one-time payout.
B. Voluntary terminations relate to layoffs or reductions in workforce.
C. Employers incur expenses related to voluntary terminations but not to involuntary
terminations.
D. Expenses related to voluntary terminations may be avoided by hiring replacement
employees within 60 days of the terminations.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Trust Funds

54. Other postemployment benefits may include:

A. Health care.
B. Life insurance.
C. Long-term care.
D. All of the above.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-06 Describe accounting for other postemployment benefits plans.
Topic: Other postemployment benefits

8-40
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McGraw-Hill Education.
55. In pension accounting, the employer's net pension liability:

A. Is measured as the total pension liability less the amount of fiduciary net position held
for future pension payments.
B. Represents the portion of the present value of projected benefit payments to be
provided through the pension plan to current active and inactive employees that is
attributed to those employees' past periods of service.
C. Is the same as the net pension obligation.
D. Is based on actuarial valuations generally required to be performed at least every five
years.

AACSB: Knowledge Application

AICPA: FN Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Accounting

Short Answer Questions

8-41
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McGraw-Hill Education.
56. The following are key terms in Chapter 8 that relate to accounting for pension plans.

A. Agent multiple-employer pension plan

B. Cost-sharing multiple-employer pension plan
C. Covered payroll
D. Defined benefit plan
E. Defined contribution plan
F. Net pension liability
G. Service cost
H. Total pension liability

For each of the following definitions, indicate the key term from the list above that best
matches by placing the appropriate letter in the blank space next to the definition.

_____ 1. A pension plan which specifies the amount or rate of contribution that the
employer and employees must contribute to the members’ accounts in the pension plan.
_____ 2. The portion of the present value of projected benefit payments to be provided
through the pension plan to current active and inactive employees that is attributed to
those employees’ past periods of service.
_____ 3. The portion of the actuarial present value of projected benefit payments that is
attributed to the current year, interest on the total pension liability, benefit payments, and
other changes to the total pension liability.
_____ 4. The pension obligations of many employers are pooled and plan assets can be
used to pay the benefits of the employees of any employer that provides pensions through
the pension plan.
_____ 5. Plan assets of numerous employers are pooled for investment purposes but
accounts are maintained for the individual employer participants.

1. E, 2. H, 3. G, 4. B, 5. A

AACSB: Knowledge Application

AICPA: FN Reporting
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Accounting

8-42
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McGraw-Hill Education.
Essay Questions

57. If a city has a responsibility for endowed resources, how would city management decide
whether to account for the resources in a permanent fund or a trust fund? How does
financial reporting of the funds differ?

If resources entrusted to a government are specified for public purposes that benefit the
general citizenry (for example, to maintain parks and cemeteries or to acquire art for
public buildings), they are considered governmental rather than fiduciary activities under
GASB standards. Thus, public-purpose endowments are accounted for as permanent
funds. Endowments set aside for private purposes are accounted for as private-purpose
trust funds. The principal financial reporting difference is that financial information for a
private-purpose trust is reported in the statement of fiduciary net position and statement
of changes in fiduciary net position, whereas that for a permanent fund is reported in the
balance sheet-governmental funds and statement of revenues, expenditures, and changes
in fund balances-governmental funds.

AACSB: Knowledge Application

AICPA: FN Reporting
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Fiduciary Fund Reporting

8-43
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McGraw-Hill Education.
58. Why do agency funds have no fund equity? What classes of accounts are reported in
agency fund financial statements?

When an agency fund is used to account for assets, the assets belong to the party or
parties for whom the government acts as an agent, and not to the government itself. Thus,
agency fund assets are offset by liabilities equal in amount and no fund equity accounts
exist.

AACSB: Knowledge Application

AICPA: FN Reporting
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Accounting for Agency Funds

59. Explain the purpose of the account "undistributed change in fair value of investments"
used in a cash and investment pool.

The account "undistributed change in fair value of investments" is used in a cash and
investments pool trust fund to accumulate the unrealized and realized gains and losses on
investments that arise when investments in the pool are revalued to fair value or sold. This
is a liability account that is distributed to pool participants when a distribution to a pool
participant is made.

AACSB: Knowledge Application

AICPA: FN Reporting
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Distinguish between the purposes of internal service funds and enterprise funds.
Learning Objective: 08-01 Explain how trust and agency funds are used to report on the fiduciary activities of a
government.
Topic: Internal Service Funds

8-44
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McGraw-Hill Education.
60. Describe the types of pension plans most often found in governmental entities and the
differences between them.

Pension plans are of two general types, defined contribution plans and defined benefit
plans. A defined contribution plan specifies the amount or rate of contribution, often a
percentage of covered salary, that the employer and employees must contribute to the
members’ accounts in the pension plan. The level of benefits payable upon retirement is
determined by the total amount of contributions to a member’s account and earnings on
investments. Defined benefit pension plans provide a specified amount of benefits to a
retiree based on a formula that may include factors such as age, salary, and years of
employment. They are classified as either single-employer pension plans (pensions are
provided only to employees of the employer) or multiple-employer pension plans (pension
benefits are provided to the employees of more than one employer). Multiple employer
plans can be further designated as agent or cost-sharing.

AACSB: Knowledge Application

AICPA: FN Reporting
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-05 Explain the purpose, accounting, and financial reporting for a cash and investment pool
(including an investment trust fund); a private-purpose trust fund; and a pension trust fund.
Topic: Pension Accounting

8-45
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McGraw-Hill Education.
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