Which of the following transactions should the City of Highland account for in a trust fund?
A)General fund contributions received by the city pension plan.
B)Greens fees received from golfers at the city-owned golf course.
C)Grants received from the Federal government to purchase buses to be used for public transit.
D)Proceeds of bonds issued to construct a new city hall building.

Question

Quizplus · Accepted Answer

Trust funds are used to account for resources held by a government in a trustee capacity for others. Pension plans are typically accounted for in trust funds because the city holds and manages these funds on behalf of the employees.

Which of the Following Transactions Should the City of Highland