The most common difference between funds-based and government-wide financial statements is
A)government-wide statements of activities show operating data by function
B)government-wide statements of activities use a format that differs from proprietary funds statements of revenues
C)interfund payables and receivables must be eliminated in the preparation of the statement of activities
D)all of the above

Question

The most common difference between funds-based and government-wide financial statements is
A)​government-wide statements of activities show operating data by function
B)​government-wide statements of activities use a format that differs from proprietary funds statements of revenues
C)​interfund payables and receivables must be eliminated in the preparation of the statement of activities
D)​all of the above

Quizplus · Accepted Answer

All the options listed are differences between funds-based and government-wide financial statements. Government-wide statements of activities indeed show operating data by function, use a format that differs from proprietary funds statements of revenues, and require the elimination of interfund payables and receivables in the preparation of the statement of activities.

The Most Common Difference Between Funds-Based and Government-Wide Financial Statements