A Governmental Entity Has a General Fund, Four Special Revenue

question 34

Multiple Choice

A governmental entity has a General Fund, four Special Revenue Funds, two Debt Service Funds, a Permanent Fund, two Enterprise Funds, three Internal Service Funds, and two Pension Trust Funds. Using the criteria from GASB Statement No. 34 to identify major funds, the government discovers that two of the Special Revenue Funds and one Enterprise Fund meet the minimum criteria to be a major fund. How many individual governmental funds may be reported as major funds?

• A) Four (4).
• B) Eight (8).
• C) Ten (10).
• D) Fifteen (15).

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Definitions:

Temporal Precedence

The principle that establishes the need for a cause to occur before its effect, crucial in establishing causal relationships in research.

Causation

The action of causing something, indicating a relationship between two events where one directly effects the change in the other.

Behavior

The actions or reactions of an object or organism, often in response to its environment or stimuli.

Alternative Explanations

Other possible interpretations or reasons that could account for observed outcomes or phenomena, challenging the initial hypothesis.