Reporting Fund Financial Information in Separate Columns for Each Major

question 3

Multiple Choice

Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds

• A) Means that only those funds that meet the GASB's 10 percent and 5 percent rules are reported in separate columns.
• B) Is optional under GAAP,but is generally required by state laws for governments.
• C) Is the same manner of reporting used by business organizations.
• D) Is required by generally accepted accounting principles for state and local governments.

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Definitions:

Preconceptions

Preformed opinions or beliefs, often without basis in fact or experience, that influence one's perception.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Overconfidence

A cognitive bias where an individual's subjective confidence in their own abilities is greater than their objective accuracy.

Representativeness Heuristic

A mental shortcut that involves making a decision based on how closely a new situation or object resembles a prototype or typical case.