Brookside City provides the following information about its Road Special Revenue Fund and totals of other funds in order to decide if the Road Special Revenue Fund should be reported as a "major fund" on the governmental fund financial statements: Road Special Revenue Fund Total All Governmental Funds Total Governmental and Enterprise Funds Total assets $100,000 $1,500,000 $3,500,000 Total liabilities $90,000 $800,000 $1,500,000 Total revenues $120,000 $1,400,000 $2,800,000 Total expenditures $115,000 $1,300,000 $2,500,000 Is the Road Special Revenue Fund a major fund, and if so, based on which of the financial statement elements? Select one:

A. Yes, it is a major fund based on expenditures. B. Yes, it is a major fund based on total assets. C. Yes, it is a major fund based on total liabilities. D. No, it is not a major fund

Answer rating: 100% (QA)

To determine whether the Road Special Revenue Fund is a major fund we need to compare its financial ... View the full answer