Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) Debt service funds are required to report accrued interest and principal payments as current liabilities.
B) All of the governmental funds use the modified accrual basis of accounting.
C) General fixed assets that are acquired with governmental fund resources are recorded as expenditures in the governmental funds but are displayed as capital assets in the governmental-wide financial statements.
D) Permanent funds reflect resources that are legally restricted so that principal may not be expended and earnings are used to benefit the government or its citizenry.