Which of the following is true regarding the financial statements for special-purpose entities?
A) Special-purpose entities that are engaged only in one governmental activity may combine government-wide and governmental fund statements.
B) Special-purpose entities that are engaged in fiduciary activities only prepare the statements required for fiduciary funds Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position).
C) Both of the above.
D) Neither of the above.

Question

Quizplus · Accepted Answer

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 engaged only in fiduciary activities prepare only the fund-basis statements required of fiduciary funds; the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position plus RSI. A Statement of Cash Flows is not required.

Which of the Following Is True Regarding the Financial Statements