The Concept of Major Versus Nonmajor Funds Does Not Apply

question 64

True/False

The concept of major versus nonmajor funds does not apply to permanent funds, as it does to governmental and proprietary funds.

---

Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to update the balances of certain accounts.

Inventory

The cumulative quantity of products and materials a business possesses for the aim of selling or manufacturing.

Alternative Adjusting Entries

Adjustments made in the accounting records to record revenues that have been earned but not yet recorded or expenses that have been incurred but not yet recorded.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounting period they relate to.