In reviewing their governmental funds, a local municipality determines that three of the funds (including the General Fund) are considered major funds and the remaining six governmental funds are nonmajor. However, management prefers to report all of its governmental funds as major funds. What is the maximum number of fund columns that could be presented on the governmental fund balance sheet?

Question

Quizplus · Accepted Answer

Under GASB (Governmental Accounting Standards Board) standards, a government can report more funds as major than the minimum required if it chooses to do so. Therefore, the municipality can report all nine of its governmental funds as major funds on the balance sheet.

In Reviewing Their Governmental Funds, a Local Municipality Determines That