Question

Which of the following statements is true regarding the basic financial statements of a state or local government?

A) Separate columns should be provided in the government-wide financial statements for governmental activities and business type activities.
B) Governmental fund and proprietary fund financial statements should provide a separate column for each major fund.
C) Aggregate information about all non major governmental funds or non-major enterprise funds should be reported in a single column of the gov. fund or proprietary fund financial statements.
D) All of the above

Answer 1

The true statement regarding the basic financial statements of a state or local government is that aggregate information about non-major funds should be reported in a single column.

Step-by-step explanation:

Out of the given options, the statement that is true regarding the basic financial statements of a state or local government is option C) Aggregate information about all non-major governmental funds or non-major enterprise funds should be reported in a single column of the gov. fund or proprietary fund financial statements. This means that for non-major funds, the financial statements will report the total amount of those funds in a single column. The other options are not accurate because separate columns are not provided for governmental and business type activities in the government-wide financial statements (option A) and separate columns are not provided for each major fund in the gov. fund and proprietary fund financial statements (option B).