A special-purpose government that engages only in a single governmental-type program
A) Need not prepare fund financial statements.
B) May combine fund and government-wide statements into a single statement.
C) May present a government-wide income statement in a business format showing expenses deducted from revenues.
D) Should be reported upon as a blended component unit of a general-purpose government.

Question

Quizplus · Accepted Answer

CSpecial-purpose governments that engage only in a single governmental-type program have the flexibility to combine fund and government-wide statements into a single statement (B) and may present a government-wide income statement in a business format showing expenses deducted from revenues (C). This approach simplifies financial reporting for entities with a focused scope of activities.

A Special-Purpose Government That Engages Only in a Single Governmental-Type