In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following statements is true?

  1. I. Infrastructure assets do not need to be reported on the government-wide statement of net assets if the government decides to use the modified approach in its accounting for infrastructure.
  2. II. Component units are reported on the financial statements for governmental funds.
    1. a. I only.
    2. b. II only.
    3. c. Both I and II.
    4. d. Neither I nor II.