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

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