Which of the Following Is Not True Regarding Combining Fund

question 16

Multiple Choice

Which of the following is not true regarding combining fund statements?

• A) Combining statements are part of other supplementary information.
• B) All non-major funds are included in the combining statements.
• C) Combining statements for non-major funds are required for governmental funds only.
• D) The total column in the combining statements is equal to the non-major funds column in the basic financial statements.

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Definitions:

Significantly Influenced

A situation where an entity has a notable but not controlling interest in another entity, impacting its financial and operating policies.

Associate

An entity in which an investing entity has significant influence, typically through owning a substantial but not majority shareholding, usually between 20% and 50%.

Other Comprehensive Income

Represents items of income and expense that are not realized through the profit and loss account, including gains or losses from foreign currency translation and changes in the fair value of investments.

Debt Investments

Investments made by purchasing bonds or other debt instruments, offering returns in the form of regular interest payments.