Questions: 1. The fee for the collection of property taxes by an Agency Fund will result in revenue in which of the following funds?
a. General Fund and Agency Fund
b. Agency Fund
c. Capital Projects Fund
d. Special Revenue Fund and Agency Fund
e. None of the above
2. Blaken Township established an Agency Fund to account for the collection and distribution of a general sales tax. The tax is collected for the General Fund, an independent school district, and several independent drainage districts. The school district and the drainage districts are entities that are separate from the city. During the year, $500,000 was collected in sales taxes. Entries to record the collection and distribution of the resources for the city are recorded in which of the following funds?
a. General Fund
b. Agency Fund
c. General Fund and Agency Fund
d. Special Revenue Fund and Agency Fund
e. None of the above
3. Collection of resources that must be distributed to other funds should be recorded in an Agency Fund as a debit to Cash and a credit to which account?
a. Liability
b. Expenditures
c. Revenues
d. Other financing sources
e. Other financing uses
4. Which of the following funds does not have a fund balance account or net position account?
a. General Fund
b. Special Revenue Fund
c. Capital Projects Fund
d. Permanent Fund e. Agency Fund
5. For which of the following activities might an Agency Fund be used?
a. Revenue generated from a property tax levy
b. Expenditures of the General Fund
c. Debt service for Enterprise Fund debt
d. Debt service of general obligation bonds used to finance an addition to city hall
e. None of the above
6. According to GAAP for Pension Trust Funds, which of the following is true?
a. Revenues must be transferred to a Permanent Fund.
b. Payments of resources are recorded as deductions.
c. There is no concept of fund balance or net position.
d. All disbursements must be made to the General Fund.
e. None of the above