Special-purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements

Question

Quizplus · Accepted Answer

The determining factor on what set of financial statements should be prepared is whether the special-purpose government is engaged solely in governmental-type activities, business-type activities or fiduciary-type activities. Special purpose governments that are engaged in only one governmental-type activity are permitted to combine the fund and government-wide financial statements.

Special-Purpose Governments That Are Engaged in Only One Governmental-Type Activity