Which of the Following Statements Is True Regarding the Inclusion

question 27

Multiple Choice

Which of the following statements is true regarding the inclusion of individual non-major funds in the fund-level financial statements?

• A)Individual non-major internal service funds are reported in the fund-level financial statements if a government makes a special election to report them
• B)Individual non-major funds must always be reported in the fund-level financial statements.
• C)Individual non-major funds must be reported in the fund-level financial statements if,in total,they are more than 50 percent of the total assets or liabilities of the fund category.
• D)Individual non-major funds may be reported as "major funds" in the fund-level financial statement if governmental officials believe it is important to financial statement users.

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Definitions:

Bonds Outstanding

The total amount of bonds that have been issued by a corporation or government and have not yet been repaid.

Leveraged Value

Refers to the increased value a company aims to achieve by borrowing capital or using financial leverage to fund its operations or investments.

Weighted Average

A calculation that takes into account the varying degrees of importance or values of the components in the data set.

Cost of Debt

The effective rate that a company pays on its current debt, which can be measured before or after taxes.