The government-wide statement of activities bears little resemblance to the income statement of a business.

Question

Quizplus · Accepted Answer

The government-wide statement of activities is used to report the overall financial performance of a government entity, which includes revenue, expenses, and changes in net position. It is governed by different accounting standards and principles compared to the income statement of a business, which focuses on generating profits from operations. Therefore, the two documents are not comparable.

The Government-Wide Statement of Activities Bears Little Resemblance to the Income