Final answer:
It is false that governmental health care organizations report only as special-purpose entities engaged in business-type activities. These organizations follow GASB guidelines and usually engage in a mixture of governmental and business-type activities, not just the latter.
Step-by-step explanation:
The statement that governmental health care organizations typically report as special-purpose entities engaged only in business-type activities is false. Governmental organizations, including health care organizations, follow the Governmental Accounting Standards Board (GASB) guidelines. However, these entities often engage in both governmental-type activities (like providing public health services or Medicaid administration) and business-type activities (such as operating public hospitals).
A governmental agency like Health and Social Services would be more complex and typically prepares a Comprehensive Annual Financial Report (CAFR), which includes financial information on all activities, both governmental and business-type. Unlike a special-purpose entity that only engages in business-type operations, health departments and similar agencies provide a wider array of services that are not strictly business-oriented.