Question

Which of the following must be reported as a major fund?

a.General Fund
b.Fund having total assets, L, rev, or expenditures equaling at least 10% of total gove't or enterprise fund amount for the same element as applicable and atleast 5 percent of the combined gov't and enterprise fund total amount for same element
c.A and B
d.neither

Answer 1

A major fund is the General Fund and any other governmental or enterprise fund that meets certain quantitative thresholds, specifically at least 10% of the corresponding total funds and at least 5% of the combined total of all such funds.

Step-by-step explanation:

The student has inquired about which funds must be reported as a major fund in governmental accounting. According to governmental financial reporting standards, the correct answer is both a. General Fund and b. Fund having total assets, liabilities, revenues, or expenditures that meet specific quantitative thresholds. Specifically, a fund qualifies as a major fund if it contains at least 10% of the total governmental or enterprise funds amounts for the same element, and also at least 5% of the combined total of governmental and enterprise funds amounts for the same element.

In summary, both the General Fund and any other fund that meets the defined quantitative thresholds must be reported as major funds in the governmental financial statements.