Which of the Following Governmental Funds Must Be Reported as a Major

question 58

Multiple Choice

Which of the following governmental funds must be reported as a major fund?

• A) The General Fund.
• B) Any fund with total assets, liabilities, revenues, or expenditures that are 10% or more of the General Fund and 5% or more of total General Fund and Business-type Activities.
• C) The government may opt to include or exclude any fund it choses as a major fund.
• D) Only the General Fund and special revenue funds that meet the 10% and 5% size criteria.

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Definitions:

Insurable Interest

A stake in the value of an entity or event for which an insurance policy is purchased to mitigate risk of loss.

Consulting Partnership

A business arrangement where two or more individuals or entities collaborate to offer consulting services, pooling expertise and resources.

Insurance Company

A company that offers financial protection to individuals and entities against potential losses or damages in exchange for payment of premiums.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which can lead to a contract being voided if it influenced the agreement.