Which of the following is true regarding financial reporting of governmental funds? multiple choice both the fund balance of governmental funds reports fund balance as non-spendable, restricted, committed, assigned and unassigned and governmental funds include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds are true. neither the fund balance of governmental funds reports fund balance as non-spendable, restricted, committed, assigned and unassigned nor governmental funds include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds is true. the fund balance of governmental funds reports fund balance as non-spendable, restricted, committed, assigned and unassigned. governmental funds include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u. s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.