Governmental funds: There are five types of governmental funds The general funds for governmental operations such as payment of salariesand purchase of supplies. Special revenue funds for special projects such as construction projects. Capital project funds for capital maintenance and revenue determination. Debt service funds for long term payment and interest payment. Permanent funds as restricted fund such as earnings only. Governmental units are required to follow GASB statement 34, for financial reporting and need to provide appropriate disclosures. To explain :The two tests for determining major governmental funds for which separate disclosure is required.

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Chapter 18, Problem 18.9Q

To determine

Governmental funds: There are five types of governmental funds

The general funds for governmental operations such as payment of salariesand purchase of supplies.

Special revenue funds for special projects such as construction projects.

Capital project funds for capital maintenance and revenue determination.

Debt service funds for long term payment and interest payment.

Permanent funds as restricted fund such as earnings only.

Governmental units are required to follow GASB statement 34, for financial reporting and need to provide appropriate disclosures.

To explain:The two tests for determining major governmental funds for which separate disclosure is required.

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