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

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Multiple Choice

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

Explanation:
In governmental fund reporting, the General Fund is always treated as a major fund because it is the government’s primary operating fund. Major funds are those that meet size thresholds, but the General Fund is automatically included as a major fund regardless of its measured size. Other funds such as Debt Service, Capital Projects, and Special Revenue become major only if they meet the required 10% of the total for their category and 5% of the combined totals of all funds. Since the General Fund must be reported as major by definition, it is the best answer.

In governmental fund reporting, the General Fund is always treated as a major fund because it is the government’s primary operating fund. Major funds are those that meet size thresholds, but the General Fund is automatically included as a major fund regardless of its measured size. Other funds such as Debt Service, Capital Projects, and Special Revenue become major only if they meet the required 10% of the total for their category and 5% of the combined totals of all funds. Since the General Fund must be reported as major by definition, it is the best answer.

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