Final answer:
The statement is false as major funds, not nonmajor funds, are reported separately in governmental accounting financial statements to provide more detailed information.
Step-by-step explanation:
The statement correctly refutes the claim that the criteria for being considered a major fund must be reported under the label "nonmajor fund" in a single column. In governmental accounting, the Governmental Accounting Standards Board (GASB) establishes criteria for identifying major funds, and these funds are reported separately in financial statements. Major funds meet specific quantitative thresholds and significance criteria set by GASB.
The purpose of reporting major funds separately is to provide users of the financial statements with more detailed information about the funds that are most significant to the government's overall financial position and activities. Funds that do not meet the criteria for being considered major are typically aggregated and reported in a single column labeled "nonmajor funds." This approach enhances transparency and helps users better understand the financial significance of different funds in governmental financial reporting.