Generally accepted accounting principles applicable to state and local governments require that
A) Only governmental funds and proprietary funds should be established.
B) Only those funds required by law,GASB standards,and sound financial administration should be established.
C) Only those funds required by law should be established.
D) All categories of funds must be established.

Question

Quizplus · Accepted Answer

GASB (Governmental Accounting Standards Board) standards require that only those funds required by law, GASB standards, and sound financial administration should be established for state and local governments. This ensures that the financial statements are presented in a transparent and reliable manner, and that financial resources are managed effectively and efficiently. Therefore, it is not necessary to establish all categories of funds, and some may be redundant or not useful for the particular government entity.

Generally Accepted Accounting Principles Applicable to State and Local Governments