Assume a government is determined to be a special-purpose government engaged in business-type activities only.Which of the following financial statements would be required?
A) Balance Sheet, Statement of Revenues, Expenditures, and Changes in fund Balances.
B) Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, Statement of Cash Flows.
C) Statement of Net Assets, Statement of Activities, Statement of Cash Flows.
D) Statement of Net Assets and Statement of Activities.

Question

Quizplus · Accepted Answer

A special-purpose government engaged in business-type activities only would prepare a Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, and a Statement of Cash Flows, as these are typical for enterprise funds.

Assume a Government Is Determined to Be a Special-Purpose Government