Question

Which of the following statements regarding employer reporting of pension trust funds is not correct?

A. Contributions by the government funds are recorded as expenditures in the General Fund.
B. Thhe net pension liabilities are reported in the government-wide statements.
C. The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statement.
D. Governmental funds report net pension liabilities of governmental fund employees as a fund liability.

Answer 1

The correct statement regarding employer reporting of pension trust funds is D. Governmental funds report net pension liabilities of governmental fund employees as a fund liability. The statement that is not correct is D.

Step-by-step explanation:

The correct statement regarding employer reporting of pension trust funds is D. Governmental funds report net pension liabilities of governmental fund employees as a fund liability.

In employer reporting of pension trust funds, contributions by the government funds are recorded as expenditures in the General Fund (Statement A).

Net pension liabilities are reported in the government-wide statements (Statement B).

The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statement (Statement C).

Therefore, the statement that is not correct is D.