Which Person Would Generally Be Treated as a Material Participant

question 123

Multiple Choice

Which person would generally be treated as a material participant in an activity?

• A)A participant in a rental activity
• B)A limited partner
• C)An LLC member not involved with management of the LLC
• D)A general partner

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Definitions:

Special Revenue Funds

Funds used by governments to account for revenue from specific sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Enterprise Funds

Funds used by a government to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that the costs of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges.

Capital Projects Funds

Governmental accounting funds used to account for financial resources that are allocated for the acquisition or construction of major capital assets by a government, except those financed by proprietary funds.

Debt Service Funds

Governmental funds used to account for the accumulation of resources for, and the payment of, long-term debt principal and interest.