When establishing funds,governments should attempt to have a large number of special revenue and other funds to provide the user with enough detail to understand the transactions.

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When establishing funds, governments should attempt to have as few funds as possible to simplify the accounting and budgeting process. Having a large number of funds can make it difficult for users to understand the transactions and can also make it harder for the government to track and manage the funds effectively. The focus should be on creating transparent and understandable financial reports, rather than on creating numerous funds.

When Establishing Funds,governments Should Attempt to Have a Large Number