Which of the following is true regarding financial reporting of special-purpose entities?
A) Special-purpose entities might be included as component units in a primary government's financial statements.
B) Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements.
C) Both of the above are true.
D) Neither of the above is true.

Question

Quizplus · Accepted Answer

Special-purpose entities can be included as component units in a primary government's financial statements, and they may prepare combined statements if they engage in a single governmental activity.

Which of the Following Is True Regarding Financial Reporting of Special-Purpose