Which one of the following statements is true with regard to external reporting of major...

GASB Statement No. 34 provides the criteria for determining major funds, primarily based on quantitative thresholds (e.g., 10% of total assets, liabilities, revenues, or expenditures/expenses).

However, GASB also allows management to designate any governmental or enterprise fund as a major fund if, in its judgment, it is particularly important to users of the financial statements—even if it doesn’t meet the quantitative criteria.

Other options are incorrect:

The general fund is always presented as a major fund regardless of criteria.

Internal service funds are never reported as major funds in the fund financial statements.

Relevant References:

GASB Statement No. 34 – Paragraph 76

GASB Codification Section 2200 – Fund Reporting Requirements

GFOA ACFR Preparation Guide

Answer: C. Management can elect to present any governmental or enterprise fund as a major fund