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) Statements combining the governmental funds and government-wide statements.
C) Both government-wide and governmental fund basis statements.
D) Either B or C 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. Otherwise, both the government-wide and fund statements would be required.

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