Directions: Select the best answer for the following multiple choice questions:

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

a. The government-wide financial statement includes a statement of cash flows?

b. The government-wide financial statements are prepared on the financial resources measurement focus for governmental activities and the economic resources measurement focus for business-type activities.

c. The government-wide financial statements include a statement of net position.

d. Infrastructure assets must be depreciated on the statement of activities.

4. Under GASB Statement No. 34, which of the following is true of infrastructure?

a. Infrastructure must be recorded and depreciated unless a modified approach is used, in which case, depreciation is not required.

b. Infrastructure must be recorded and depreciated in all cases.

c. Infrastructure is not to be recorded and depreciated.

d. The state and local governments have the option, but are not required, to record and depreciate infrastructure.

For each independent situation, please choose the answer that best satisfies the question. Please provide an explanation for the answer you chose. Thank you.