Governmental funds, other than the General Fund, are considered major if:
I. Total Assets, Liabilities, Revenues, or Expenditures of that individual governmental fund are at least 10% of the corresponding total assets, liabilities, and so forth for all governmental funds.
II. Total Assets, Liabilities, Revenues, or Expenditures of the individual governmental fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

Question

Quizplus · Accepted Answer

Other governmental funds are considered major if both the following criteria exists: 1) Total assets, liabilities, revenues, or expenditures of that individual governments fund are at least 10% of the corresponding total for all governmental funds. And 2) Total assets, liabilities, revenues, or expenditures of the individual governments fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.
Use the following to answer the next five questions:
On October 1, 2016, the City of Mizner issued $5,000,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $4,968,750 was used to construct the addition, which was completed prior to June 30, 2017. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2016, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1, 2017. The fiscal year for Mizner is July 1- June 30.

Governmental Funds, Other Than the General Fund, Are Considered Major