Answered: How are Private Purpose Trust Funds…

Business

Accounting

How are Private Purpose Trust Funds controlled?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

How are Private Purpose Trust Funds controlled?

Expert Solution

Step 1

Funds kept in a qualified trust that is not needed to be disclosed in Pension or Investment trust funds are referred to as private-purpose trust funds. These funds are utilized for specified objectives that were specified by the individual or group that provided the funds to the authorities in the first place.

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