[nib]

Based on the aforementioned criteria, the following table depicts both the 10% and 5% thresholds:

Funds Assets Liabilities Revenues Expenditures

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Total governmental 485,680 55,180 402,776 316,572

10% governmental 48,568 5,518 40,278 31,657

Total enterprise 1,384,069 506,153 139,559 90,921

10% enterprise 138,407 50,615 13,956 9,092

5% overall test 93,487 28,067 27,117 20,375

Special Revenue Funds:

Grants 10,495 10,495 24,929 24,022

Is this special revenue funds would be considered major fund?

my answer is = yes

1)grant pass 10 % test because liability 10,518 of grant > 5,518 as 10 % thrreshold of governmental fund

2) after that if check grant for 5% test.

grant pass 5 % test also because expenditure amount , 24,022 of grant > 20, 375 as 5 % thrreshold of overall test

3) thus grant should be considered as major fund.

4) but for my surprise mcq says grant is not major fund .

5) please let me know , what is the missing clue for this problem .why grant is not major fund

[Biff-1955-Tannen]

It needs to be the same category to pass both tests. The 10% of liabilities passes the 10% test, but not the 5% test.
You used expenditures as your 5% test. You should have used liabilities.

AUD 93 Jan 16
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FAR 83 Apr 16
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[nib]

Thanks .

you made it so easy .

@ Biff-1955-Tannen

Pls check my u/s ,????

1)This mcq is asking about Special rev fund which is govt fund .
2)So 10 % test check for governmental fund .
3)we don't use 10 % test enterprise fund for this mcq because special rev fund is erported in government fund .

In case mcq asking for some enterprise fund , then i should check 10 % test for enterprise fund .I should not check for 10 % government fund .

[Biff-1955-Tannen]

Yes correct. If it's asking about an enterprise fund you will use total enterprise for the 10% test and then both enterprise and governmental for 5% test

If it's asking about a governmental fund you will use total governmental for the 10% test and then both governmental and enterprise for the 5% test

AUD 93 Jan 16
BEC 83 Feb 16
FAR 83 Apr 16
REG 84 May 16

99% Ninja MCQ only

[jeff]

bin – if you would, please capitalize your posts (it's a teeny tiny pet peeve of mine…my personal kryptonite, actually…it messes with my OCD) and make your topic titles more descriptive of your question instead of something like
“govt =major fund”..you'll get better responses

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[monikernc]

I would also like to suggest that he or she post first in the FAR Study group thread.

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[nib]

@ Biff-1955-Tannen
thanks for the explanation . Now i will always remember it .

@ Jeff ,
I understood . In future i will make sure to write explanatory title .

@ monikernc'
I post my queries first to FAR study group . When i dont get reply , i post it in general topic .So that more people can access it in hope of getting my answer .

I guess, government and not for profit are not that easy .

[jeff]

Specific questions about specific topics is really what the study group is for.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

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