Question

Which of the following statements is FALSE?

A. A complete CAFR includes combining financial statements to reflect major funds.
B. The three major sections of a CAFR are the Introductory, Financial, and Statistical sections.
C. State and local governments are not required to prepare a CAFR.
D. The General Fund is NOT always considered to be a major fund when preparing fund basis financial statements.
E. With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful.

Answer 1

Answer:

The answer is: C) State and local governments are not required to prepare a CAFR.

Explanation:

A Comprehensive Annual Financial Report (CAFR) is a financial report issued by a governmental entity; state and municipal governments, and other governmental entities. It includes the entity´s audited financial statements and other relevant information. It must comply with the accounting requirements set by the Governmental Accounting Standards Board (GASB).