A Major Governmental Fund Is One That Has One or More

question 9

Multiple Choice

A major governmental fund is one that has one or more elements (e.g., assets, liabilities, revenues, or expenditures) that is at least:

• A) Five percent of the corresponding element(s) of total governmental funds and 10 percent of the corresponding element(s) of total governmental and enterprise funds combined.
• B) Ten percent of the corresponding element(s) of total governmental funds and 10 percent of the corresponding element(s) of total governmental and enterprise funds combined.
• C) Five percent of the corresponding element(s) of total governmental funds and five percent of the corresponding element(s) of total governmental and enterprise funds combined.
• D) Ten percent of the corresponding element(s) of total governmental funds and 5 percent of the corresponding element(s) of total governmental and enterprise funds combined.

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Definitions:

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living beings and ecosystems.

Marginal Social Cost

The additional cost to society as a whole of producing one extra unit of a good or service.

Too Little

A situation where the quantity or amount available or supplied is insufficient to meet demand or requirements.

External Cost

Costs of a transaction that affect people other than the buyer or seller, typically not reflected in the market price.