Final answer:
The statement is True. Governments can demonstrate operational accountability by reporting proprietary and fiduciary fund financial information, as well as all government-wide financial information, using an economic resources measurement focus and the accrual basis of accounting.
Step-by-step explanation:
The statement is True. Governments can demonstrate operational accountability by reporting proprietary and fiduciary fund financial information, as well as all government-wide financial information, using an economic resources measurement focus and the accrual basis of accounting.
For example, governments can report their financial information using the accrual basis of accounting, which recognizes revenue when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid out. This provides a more accurate reflection of the government's financial position and performance.
Additionally, by reporting financial information for both proprietary and fiduciary funds, governments can provide a comprehensive view of their financial activities and resources.