Question

1.) Which governmental fund must always be reported in a separate column in the governmental fund financial statements?

Select one:

a. Capital Projects Fund.

b. Debt Service Fund.

c. General Fund.

d. Special Revenue Fund.

2.) Major fund reporting is required for which of the following fund types?

Select one:

a. Enterprise Funds.

b. Internal Service Funds.

c. Agency Funds.

d. Private-Purpose Trust Funds.

Answer 1

Answer to Q#1 (First question in the list): Option-(c): General Fund Reason: For maintaining proper books of accounts by recording economic activities of the U.S. state and local governments, an independent, private-sector, not-for-profit organization, called Governmental Accounting Standards Board was established. It is also called as GASB. GASB takes care of establishing and improving standards of financial accounting and reporting for U.S. state and local governments, through open and thorough due process. Generally Accepted Accounting Principles (GAAP) are required to be followed by all business firms for recording and maintaining accounting records in the U.S. As for as the U.S. state and local governments are concerned, GASB acts as the official source of GAAP for them GASB requires that general fund must always be reported in a separate column in the governmental fund financial statements because general fund is considered as major fund.