Assume that a blended component unit of the town has its own General Fund, Special Revenue Fund, and Capital Projects Fund. All funds meet the major fund criteria. The primary government has a General Fund, three Special Revenue Funds, one Permanent Fund, one Debt Service Fund, and three Capital Projects Funds. All but the Permanent Fund and two Special Revenue Funds of the primary government are major funds. How many major Special Revenue Funds would the primary government report in the governmental funds financial statements?

Question

Quizplus · Accepted Answer

The question states that the blended component unit has one Special Revenue Fund, therefore the primary government has a total of four Special Revenue Funds. However, only one of those Special Revenue Funds is a major fund, as the other two are not listed as major funds. Therefore, the primary government would report only one major Special Revenue Fund in the governmental funds financial statements.

Assume That a Blended Component Unit of the Town Has