The answer is C.
Major funds are funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.
1. 10% Test:
Any governmental fund with 10% of $45,000,000 = $4,500,000 or more assets and deferred outflows meets the first test. The beach preservation and community protection funds meet this requirement.
Any governmental fund with 10 % of $16,000,000 = $1,600,000 or more liabilities and deferred inflows also meets the requirement of major funds. The beach preservation, community protection and emergency call service funds meet this test.
Any governmental fund with $250,000,000 x 10% = $25,000,000 or more revenues meets the first test. The community protection and emergency call service funds meet this test.
Any governmental fund with $242,000,000 x 10% = $24,200,000 or more expenditures meets the first test. The community protection fund meets this test.
2. 5% Test:
The beach preservation or community protection funds have at least 5% x ($45,000,000 + $12,000,000) = $2,850,000 in assets and deferred outflows.
The emergency call service funds have at least 5% x ($16,000,000 + $8,000,000) = $1,200,000 in liabilities and deferred outflows.
Hence, beach preservation, community protection and emergency call service funds are major funds and will be shown separately in the governmental funds financial statements.
Total assets and deferred outflows Total liabilities and deferred inflows Total revenues Total expenditures/expenses Governmental funds...
1. With respect to the preparation of fund basis financial statements, enterprise funds are considered to be major when which of the following conditions exist? Multiple Choice Both When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category and When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined required to be a major...