Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds
A) Means that only those funds that meet the GASB's 10 percent and 5 percent rules are reported in separate columns.
B) Is optional under GAAP,but is generally required by state laws for governments.
C) Is the same manner of reporting used by business organizations.
D) Is required by generally accepted accounting principles for state and local governments.

Question

Quizplus · Accepted Answer

Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds is required by generally accepted accounting principles for state and local governments. This is outlined in GASB Statement No. 34. It is not optional and is specific to government accounting, not the same manner of reporting used by business organizations. The 10 percent and 5 percent rules refer to the thresholds for determining major funds, but this reporting requirement applies to all major funds, regardless of their percentage of total assets and activities.

Reporting Fund Financial Information in Separate Columns for Each Major