Which statement is TRUE regarding the reporting for escheat-related assets?

The correct choice reflects an understanding of how escheat-related assets are reported and the distinctions between different types of funds.

Escheat-related assets refer to unclaimed property that must be turned over to the state. Typically, these assets are managed within specific funds that have their own set of reporting requirements. Generally, statutory provisions dictate that escheated assets are not directly recorded as revenue in the general fund, as they are held in trust until claimed. Instead, they are usually recognized in a private-purpose trust fund, which is designed to handle such assets separately from the general fund's operations.

Moreover, if these assets were to be accounted for in the general fund, they would not typically result in recognizing a liability in the amount of the total escheat-related assets. Instead, liabilities for such assets are generally recognized when there is a probability that claims will be made, which does not equate to reporting the entire amount in the general fund.

Thus, the understanding behind escheat-reporting principles indicates that both statements presented in the other options do not accurately convey the proper accounting for escheat-related assets.