Governments that are subject to legal reporting requirements that differ from GAAP:

A. are required to maintain their accounts on a GAAP basis. are required to maintain their accounts on the basis of accounting consistent with the legal B. reporting basis. must design their accounting system to permit reporting in accordance with both GAAP and C. legal requirements, but need not maintain two sets of accounts. D. must maintain two sets of accounits-one on the legal basis and one on the GAAP basis.