Final answer:
The true statement regarding the definition of a fund is that all of the provided statements are correct. Funds are fiscal and accounting entities with self-balancing account sets, and they segregate resources to achieve specific activities or objectives.
Step-by-step explanation:
The true statement regarding the definition of a fund is D) ALL of the above. To elaborate:
- A fund is a fiscal and accounting entity, which implies that it is a separate part of the organization that is responsible for specific activities, with its own set of financial records.
- A fund has a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, meaning it maintains records in a way that always reflects a balanced financial position.
- Resources, related liabilities, and residual equities or balances and changes therein are segregated for the purpose of carrying out specific activities or attaining certain objectives, indicating that the fund's resources are allocated for designated tasks with specific goals in mind.
Understanding a fund as a fiscal entity, its accounting principles, and how it allocates resources for particular activities or objectives is critical in financial management and accounting.