Which of the following is not true regarding financial reporting of special-purpose entities?
A) Special-purpose entities might be included as component units in a primary government's financial statements.
B) Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements.
C) Special-purpose entities that are engaged only in fiduciary activities must prepare a Statement of Activities and a Statement of Fiduciary Net Position.
D) None of the above - all are true.

Question

Quizplus · Accepted Answer

Special-purpose entities that are engaged in fiduciary activities are not required to prepare a Statement of Activities and a Statement of Fiduciary Net Position. Instead, they must prepare a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position.

Which of the Following Is Not True Regarding Financial Reporting