Which of the following statements is true of a special-purpose government?
A) Special-purpose governments that are engaged in more than one governmental-type activities can combine the fund and government-wide financial statements.
B) Special-purpose governments engaged in only one business-type activity have to prepare government-wide financial statements.
C) Special-purpose governments that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements.
D) GASB Statement 39: Determining Whether Certain Organizations Are Component Units applies only to public educational institutions.

Question

Quizplus · Accepted Answer

Special-purpose governments that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements. This is because such organizations do not have multiple activities to report, making it possible to combine the financial statements. Option A is incorrect because special-purpose governments that engage in more than one governmental-type activity are required to maintain separate fund and government-wide financial statements. Option B is incorrect because special-purpose governments that engage in only one business-type activity are not required to prepare government-wide financial statements. Option D is incorrect because GASB Statement 39 applies to all types of organizations, not just public educational institutions.

Which of the Following Statements Is True of a Special-Purpose