Which of the Following Is True with Respect to the General

question 101

Multiple Choice

Which of the following is true with respect to the General Fund

• A) The General Fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10% of the total of all governmental funds
• B) The General Fund is considered to be a major fund when preparing fund basis financial statements if it bears a financial benefit or burden to the primary government.
• C) The General Fund is always considered to be a major fund when preparing fund basis financial statements.
• D) The General Fund is not reported as part of the CAFR.

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Definitions:

Repudiated

Refused to accept or be associated with; to reject a proposal, idea, or relationship, often legally or formally.

Noncompete Agreement

A legal contract preventing one party from entering into or starting a similar profession or trade in competition against another party.

Bargained-For Exchange

In reference to agreements, when a promise is made in exchange for another promise, in exchange for an act, or in exchange for a forbearance to act.

Contracts For Necessaries

Legal agreements for the supply of essential goods or services, such as food, shelter, and clothing, especially pertinent to persons unable to enter into contracts, like minors.