Introduction: General fund is the primary fund maintained by the companies for recording all inflows and outflows except which are associated with the special purpose funds. It is mostly the difference between assets and liabilities of the company’s fund.
Long term debts: Long-term debts are those debts of the company that has a maturity period of 12 months or more. These are non- current debts of the company which will not become due within one year. These are financial obligations that extent beyond 12-month period.
Internal service fund: This is reporting of sales and purchase of goods and services and also internal fund transfer between business departments. This is to approximate the external exchange values as revenues in seller’s fund and expenses in purchaser’s funds.
To choose:The correct option.
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Advanced Financial Accounting
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- Which statement is true regarding the ‘‘major’’ funds?a. The general fund is considered major if it is large enough.b. Other funds are considered major if both of the following conditions exist: (1) total assets of that individual governmental or enterprise fund constitute 20% of the governmental or enterprise categories, and (2) total assets are 10% of the total of the governmental and enterprise categories.c. A government cannot choose to reflect a fund as major even if it does not meet the criteria for major funds.d. All of the above are false.arrow_forwardUnder the reporting model required by GASB Statement No. 34, fund statements are required for governmental, proprietary, and fiduciary funds. Government-wide statements include the statement of net position and the statement of activities.1. Explain the measurement focus and basis of accounting for governmental fund statements, proprietary fund statements, fiduciary fund statements, and government-wide statements.2. Explain some differences between fund financial statements and government-wide statements with regard to component units, fiduciary funds, and location of internal service funds.3. What should be included in the statement of net position categories invested in capital assets, net of related debt, restricted, and unrestricted?arrow_forward10 An interfund transfer in should be reported in a governmental fund operating statement as a(an): Multiple Choice Revenue. Due from other funds. Other financing source. Other financing use.arrow_forward
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- Which of the following adjustments is necessary to move from governmental fund financial statements to government-wide financial statements? a. Eliminate expenditures for debt principal b. Eliminate expenditures for capital outlay and add depreciation expense c. Both of the above d. Neither of the abovearrow_forwardWhich of the following is true about the reconciliation from governmental fund changes in fund balances to governmental activities changes in net position? a. Reconciliation is required to be presented either on the face of the fund financial statement or as a separate statement. b. The reconciliation converts from modified accrual to full accrual. c. Both of the above d. Neither of the abovearrow_forwardWhich of the following is not a governmental fund? Choose the correct.a. Special revenue fundb. Internal service fundc. Capital projects fundd. Debt service fundarrow_forward
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