Test: CPA Financial Accounting and Reporting (FAR)

1.

The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?

Fund-based financial statements must be included but government-wide financial statements are optional

Either fund-based financial statements or government-wide financial statements must be included

Government-wide financial statements must be included but fund-based financial statements are optional

Both fund-based financial statements or government-wide financial statements must be included

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