Which of the Following Is True Regarding the Government-Wide Statement

Multiple Choice

Which of the following is true regarding the government-wide Statement of Activities?

A) The government-wide Statement of Activities may reflect expenses either by function (general government, public safety, etc.) or by object or natural classification (salaries, supplies, etc.) .
B) The government-wide Statement of Activities is prepared using the modified accrual basis of accounting for governmental activities and using the accrual basis of accounting for business-type activities.
C) The government-wide Statement of Activities reflects taxes as general revenues.
D) Indirect program expenses may not be allocated to the other functional areas.