Which of the following statements is true regarding fund-based financial statements?
A) Fund-based financial statements report a government's activities and financial position as a whole.
B) Fund-based 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) Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity.
D) Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated.
E) Fund-based financial statements report all assets and liabilities in a way comparable to business-type accounting.

Question

Quizplus · Accepted Answer

Fund-based financial statements focus on specific governmental functions and report the financial activities related to those functions, such as public safety, education, and health, typically using a modified accrual basis of accounting.

Which of the Following Statements Is True Regarding Fund-Based Financial