Question

Select all that apply

Government-wide financial statements ______.

-include fiduciary funds in the Statement of Net Position
-are consolidated statements
-use the economic resources measurement focus
-use accrual basis accounting

Answer 1

Government-wide financial statements are consolidated statements that use the economic resources measurement focus and accrual basis accounting. Fiduciary funds are excluded from the Statement of Net Position.

Step-by-step explanation:

The government-wide financial statements:

• Are consolidated statements
• Use the economic resources measurement focus
• Use accrual basis accounting

Fiduciary funds are not included in the Statement of Net Position as they represent resources held for the benefit of parties external to the government entity and, therefore, cannot be used to support the government’s own programs.