What Is the Underlying Reason a Governmental Unit Uses Separate

Multiple Choice

What is the underlying reason a governmental unit uses separate funds to account for its transactions?

A) Governmental units are so large that it would be unduly cumbersome to account for all transactions as a single unit.
B) Because of the diverse nature of the services offered and legal provisions regarding activities of a governmental unit, it is necessary to segregate activities by functional nature.
C) Generally accepted accounting principles require that nonbusiness entities report on a funds basis.
D) Many activities carried on by governmental units are short-lived and their inclusion in a general set of accounts could cause undue probability of error and omission.