Accounting for state and local governments involves a diverse range of activities, including business-type activities and fiduciary activities like custodial and trust funds.

In your initial post, reflect on best practices and challenges associated with preparing and presenting government balance sheets, income statements, and cash flow statements. What are the main areas of concern and debate within the literature regarding these financial statements? In your post, be sure to make clear how government operating statements differentiate from their counterparts in the private sector.

In response to your peers, Reflecting on the insights gained from your classmates' posts, how has your comprehension of government balance sheets, income statements and cash flow statements? Are there any aspects where you still have questions or need further clarification from their contributions?