Final answer:
The statement falsely equates governmental funds, proprietary funds, and fiduciary funds with governmental activities, business-type activities, and fiduciary activities of a government, respectively. While there are similarities, they are not identical, as each category encompasses more than the funds might suggest.
Step-by-step explanation:
The statement "Governmental funds are identical to governmental activities, proprietary funds are identical to business-type activities, and fiduciary funds are identical to fiduciary activities of a government" is only partially true. Governmental funds account for core governmental activities and operate similar to governmental activities but are not identical since governmental activities also include activities reported in proprietary and fiduciary funds. Proprietary funds are indeed similar to business-type activities, as they both handle activities that are commercial in nature. However, fiduciary funds are used to account for resources for which the government is the trustee or fiduciary, and while fiduciary activities do include fiduciary fund operations, they may also encompass other activities that won't necessarily be reported in fiduciary funds.