Which of the following is not true regarding financial reporting of special-purpose entities? A) Special-purpose entities might be included as component units in a primary government's financial statements. B) Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements. C) Special-purpose entities that are engaged in multiple fiduciary activities must prepare both fund-basis and government-wide financial statements. D) None of the above - all are true.

Question

Quizplus · Accepted Answer

Special-purpose governments engaged only in fiduciary activities prepare only the fund-basis statements required of fiduciary funds; the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position plus RSI. A Statement of Cash Flows is not required. They are not required to prepare government-wide statements.

Which of the Following Is not True Regarding Financial Reporting