Which of the following statements is FALSE?

A. A complete CAFR includes combining financial statements to reflect major funds.

B. The three major sections of a CAFR are the Introductory, Financial, and Statistical sections.

C. State and local governments are not required to prepare a CAFR.

D. The General Fund is NOT always considered to be a major fund when preparing fund basis financial statements.

E. With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful.

Question

Business

Lily Arroyo

29 July, 03:22

Which of the following statements is FALSE?

A. A complete CAFR includes combining financial statements to reflect major funds.

B. The three major sections of a CAFR are the Introductory, Financial, and Statistical sections.

C. State and local governments are not required to prepare a CAFR.

D. The General Fund is NOT always considered to be a major fund when preparing fund basis financial statements.

E. With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful.

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Answers (1)

Know the Answer?

Alina Meadows · Answer 1

The answer is: C) State and local governments are not required to prepare a CAFR.

Explanation:

A Comprehensive Annual Financial Report (CAFR) is a financial report issued by a governmental entity; state and municipal governments, and other governmental entities. It includes the entity's audited financial statements and other relevant information. It must comply with the accounting requirements set by the Governmental Accounting Standards Board (GASB).