Which of the following is true regarding the reporting of major funds in the governmental funds financial statements?
A) The General Fund is always considered a major fund.
B) A fund is considered major if its revenues, expenditures, assets, or liabilities exceed 10% of the total governmental fund categories and if the same element revenues, expenditures, assets, or liabilities) exceeds 5% of the governmental and enterprise funds combined.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

The general fund is always considered to be a major fund. Governmental funds, other than the general fund, are considered to be a major fund when both of the following conditions are met: 1) Total assets, liabilities, revenues or expenditures of that individual government fund constitute 10% of the total for the governmental funds category and 2) Total assets, liabilities, revenues or expenditures of that individual government fund are 5% of the total of the governmental and enterprise categories, combined.

Which of the Following Is True Regarding the Reporting of Major