A City Determines in the Current Year That It Has

question 43

Multiple Choice

A city determines in the current year that it has three major governmental funds, including the General Fund, and two major enterprise funds. The city will

• A) Always have three major governmental funds and two major enterprise funds.
• B) Evaluate each year which funds are major and which funds are considered to be nonmajor except the General Fund which is always considered a major fund.
• C) Only be required to show a separate column for the General Fund.
• D) Be able to report all of the major funds in one column on the respective fund financial statements.

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Definitions:

Raw Materials

Basic materials used in the production process, not yet transformed into finished goods.

Finished Product

Goods that have been completed through the manufacturing process and are ready to be sold.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Product or Service

The final output offered by a company to consumers, which can either be a tangible item (product) or an activity benefiting the customer (service).