With Respect to the Preparation of Fund Basis Financial Statements

question 55

Multiple Choice

With respect to the preparation of fund basis financial statements, governmental funds other than the General Fund are considered to be major when which of the following conditions exist?

• A) With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental fund constitutes 10% of the total for the governmental fund category.
• B) With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of that individual governmental or enterprise fund are 5% of the total of the governmental and enterprise categories, combined.
• C) Both A and B are required for a governmental fund to be a major fund.
• D) Either A or B would fulfill the requirements.

---

Definitions:

Cashier Checks

A check issued by a bank, drawn on its own funds rather than that of a personal account. It is typically considered a secure form of payment.

Businesses Community

A group of companies and organizations operating within the same industry or geographic area, often sharing resources, information, and economic interests.

Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.