(True or false)}

State whether each of these statements is true or false. For any false statement, indicate why it is false.

1. In fund financial statements, the General Fund should always be reported as a major fund.

2. In fund financial statements, Enterprise Funds are reported using the economic resources measurement focus and the modified accrual basis of accounting.

3. When an auditor states that an entity's financial statements present fairly its financial position and results of operations, it is reasonable to assume that the entity's financial condition is healthy.

4. Notes to the financial statements are a form of required supplementary information.

5. Nonmajor funds may be combined and presented in a single column in the fund financial statements.