Which Is One of the Criteria That Needs to Exist

question 97

Multiple Choice

Which is one of the criteria that needs to exist in order for "other governmental funds" to be considered major?

• A) Total assets and liabilities of that individual government fund are at least 10% of the corresponding total for all governmental funds.
• B) Total assets, liabilities, revenues or expenditures of the individual governmental fund are at least 10% of the corresponding total for all governmental and enterprise funds combined.
• C) Total assets, liabilities, revenues, or expenditures of the individual governmental fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.
• D) Total assets, liabilities, revenues, and expenditures of that individual government fund are at least 10% of the corresponding total for all governmental funds.

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Definitions:

Current Liabilities

Financial obligations a company is expected to settle within one year or within its operating cycle, whichever is longer.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with short-term assets.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue, calculated by dividing sales revenue by total assets.

Noncurrent Assets

Assets not expected to be converted into cash within one year or the operating cycle, including property, plant, and equipment.