Final answer:
Special purpose governments engaged in business-type activities are required to prepare comprehensive financial statements, including government-wide statements, which is a false statement.
Step-by-step explanation:
The statement that special purpose governments engaged in business-type activities are not required to prepare government-wide statements is false. Special purpose governments, also known as special districts, that are engaged in business-type activities are typically required to prepare financial statements that are similar to those used in the private sector, including government-wide statements. This is because they often operate in a manner similar to private businesses, offering goods and services for a fee, even though they are part of the government.
Examples of these activities include utilities and public transportation systems. The principles followed are based on the premise that taxpayers and other stakeholders need transparent, comprehensive financial information about the activities and financial positions of these governmental entities.