Under the GASB Statement No. 34 reporting model, which of the following is required?
A) Only one set of financial statements, prepared on the full accrual basis of accounting.
B) Only one set of financial statements, prepared on the modified accrual basis of accounting.
C) Two sets of financial statements, the general and proprietary fund statements prepared on the full accrual method and the government-wide on cash basis.
D) Two sets of financial statements, the general fund statement on modified accrual, the proprietary fund and the government-wide statements on full accrual.

Question

Under the GASB Statement No. 34 reporting model, which of the following is required? 
A) Only one set of financial statements, prepared on the full accrual basis of accounting.
B) Only one set of financial statements, prepared on the modified accrual basis of accounting.
C) Two sets of financial statements, the general and proprietary fund statements prepared on the full accrual method and the government-wide on cash basis.
D) Two sets of financial statements, the general fund statement on modified accrual, the proprietary fund and the government-wide statements on full accrual.

Quizplus · Accepted Answer

Under GASB Statement No. 34, governments are required to prepare two sets of financial statements: the fund financial statements, where the general fund is reported using the modified accrual basis of accounting, and the government-wide financial statements, where both the proprietary funds and the government-wide financials are reported using the full accrual basis of accounting.