Question

Basic Financial Statements and required supplementary information for general purpose governments should consist of:

a. Management's Discussion and Analysis
b. Only Government-Wide Financial Statements
c. Statement of Changes in Net Position
d. Only Fund Financial Statements

Answer 1

The basic financial statements and required supplementary information for general purpose governments include Management's Discussion and Analysis, Government-Wide Financial Statements, Statement of Changes in Net Position, and Fund Financial Statements.

Step-by-step explanation:

The basic financial statements and required supplementary information for general purpose governments should consist of:

1. Management's Discussion and Analysis: This section provides an overview and analysis of the financial statements, discussing important trends and significant events. It helps readers understand the financial position and results of operations.
2. Government-Wide Financial Statements: These statements provide an overall picture of the government's financial position and results of operations. They include a statement of net position and a statement of activities.
3. Statement of Changes in Net Position: This statement shows the changes in the government's net position, including revenues, expenses, gains, losses, and transfers.
4. Fund Financial Statements: These statements provide detailed information about the government's various funds, such as the General Fund, Special Revenue Funds, and Capital Projects Funds.