Which of the Following Is not True Regarding Financial Reporting

Multiple Choice

Which of the following is not true regarding financial reporting of special-purpose entities?

A) Special-purpose entities might be included as component units in a primary government's financial statements.
B) Special-purpose entities that engage in a single governmental activity may prepare statements that combine government-wide and governmental fund statements.
C) Special-purpose entities that are engaged in multiple fiduciary activities must prepare both fund-basis and government-wide financial statements.
D) None of the above - all are true.