Final answer:
Special-purpose governments that are engaged in more than one governmental activity are not permitted to combine the fund and government-wide financial statements.
Step-by-step explanation:
False. Special-purpose governments that are engaged in more than one governmental activity are not permitted to combine the fund and government-wide financial statements.
Each fund and the government as a whole should be presented separately in the financial statements. Combining the fund and government-wide financial statements would blur the distinction between different government activities and make it difficult to assess their financial performance individually.