Which of the following is a fiduciary fund?

• A. General fund
• B. Investment trust fund
• C. Enterprise fund
• D. Internal service fund

Answer: (B)

Fiduciary funds are used to report resources that the government holds in a trustee or agency capacity for others; these assets are not available to fund the government's own programs and are kept separate from the government's own operations. The investment trust fund fits this category because it reports the external portion of investment pools that the government manages on behalf of outside parties. In other words, the government acts as trustee for those investments and the assets are held for beneficiaries, not for the government's use. The general fund, enterprise fund, and internal service fund are not fiduciary funds—they are governmental or proprietary funds used to account for the government's own operations and services.