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 Position, Statement of Activities, Statement of Cash Flows.
C) Statement of Net Position, Statement of Revenues, Expenses, and Changes in Net Position, Statement of Cash Flows.
D) Statement of Net Position and Statement of Activities.

Question

Quizplus · Accepted Answer

Special purpose governments engaged only in business-type activities are not required to prepare government-wide statements. These entities provide the same fund-basis statements required of proprietary funds. These would include the Statement of Net Position or Balance Sheet, Statement of Revenues, Expenses and Changes in Net Position and Statement of Cash Flows.

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