With respect to the preparation of fund basis financial statements,governmental funds other than the major fund are considered to be major when which of the following conditions exist?
A) With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of the individual governmental fund under consideration constitutes 25% of the total for the governmental fund category.
B) With respect to fund basis financial statements, governmental funds are considered to be a major fund when total assets, liabilities, revenues, or expenditures of individual governmental or enterprise fund under consideration are 15% of the total of the governmental and enterprise categories, combined.
C) Both A and B are required for a governmental fund to be a major fund.
D) Neither A nor B are correct.

Question

Quizplus · Accepted Answer

Neither A nor B are correct because the criteria for a governmental fund to be considered a major fund typically involve the fund's total assets, liabilities, revenues, or expenditures being at least 10% of the total for the governmental funds category and at least 5% of the total for the governmental and enterprise funds combined.

With Respect to the Preparation of Fund Basis Financial Statements,governmental