Which of the Following Statements Is False

question 126

Multiple Choice

Which of the following statements is false?

• A) With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful.
• B) When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds.
• C) When preparing fund basis financial statements, any funds not reported separately are reported by function.
• D) In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.

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Definitions:

Acquisition of Shares

The process of obtaining ownership in a company by purchasing its shares, effectively transferring equity interest from one party to another.

Acquisition of Net Assets

The process of obtaining ownership of another company's assets after subtracting its liabilities, often through purchase or merger.

Push-Down Accounting

A method of accounting used in the financial statements of a subsidiary when its parent company allocates a portion of the purchase price to the subsidiary’s assets and liabilities.

ASPE

Accounting Standards for Private Enterprises; a set of accounting principles in Canada designed for private companies, focusing on simplicity and cost-effectiveness in financial reporting.