Which of the following statements is true regarding governmental fund financial statements?
A) Governmental fund financial statements report a government's activities and financial position as a whole.
B) Governmental fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.
C) Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity.
D) Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated.
E) Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting.

Question

Quizplus · Accepted Answer

Governmental fund financial statements focus on the current financial resources and expenditures, such as spending on public services and infrastructure, rather than the overall financial position or long-term assets and liabilities.

Which of the Following Statements Is True Regarding Governmental Fund