Question

Which of the following is true regarding the government-wide financial statements?

a) They focus on individual funds.
b) They include both governmental and business-type activities.
c) They exclude long-term liabilities.
d) They primarily serve internal decision-making.

Answer 1

The government-wide financial statements include both governmental and business-type activities. Therefore, the correct option is B.

Step-by-step explanation:

The statement that is true regarding the government-wide financial statements is b) They include both governmental and business-type activities.

The government-wide financial statements provide a comprehensive view of the financial activities and position of the entire government entity, including both governmental and business-type activities. These statements combine the financial information from all funds and present it in a consolidated manner.

For example, if a government operates a public utility or a hospital, the financial results of those activities would be included in the government-wide financial statements.