Assume a government is a special-purpose government engaged in only one governmental activity.Which financial statements would be required?
A) Government-wide statements only.
B) Governmental fund statements only.
C) Statements combining the governmental funds and government-wide statements.
D) Either government-wide or governmental funds statements, issued separately.

Question

Quizplus · Accepted Answer

Government-wide statements provide information about the government as a whole, while governmental fund statements provide information about the individual governmental funds. In this case, since the government is engaged in only one governmental activity, the government-wide statements and the governmental fund statements would be combined into a single set of financial statements.

Assume a Government Is a Special-Purpose Government Engaged in Only