What Is the General Rule Regarding the Reporting of Special

question 4

Multiple Choice

What is the general rule regarding the reporting of special items in fund-level financial statements?

• A)They should be displayed separately in the operating statements prepared for governmental and proprietary funds.
• B)They should be reported as part of expenditures or expenses in operating statements.
• C)They should be displayed as separate items in proprietary fund operating statements,but not in governmental fund operating statements.
• D)They should be included as part of revenues in fund operating statements.

---

Definitions:

Court Determination

A formal decision or judgment made by a court following a legal proceeding.

Fair Dealing

A legal doctrine aiming to ensure honesty and fairness in transactions and agreements, preventing parties from taking advantage of each other.

Franchise Arrangement

A business model that allows individuals or entities to operate their business using the branding and systems of an established company in exchange for a fee.

Winding Up

The second of two stages in the termination of a partnership or corporation, in which the firm’s assets are collected, liquidated, and distributed, and liabilities are discharged.