In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, which of the following financial statements is prepared using the accrual basis of accounting and the economic resources measurement focus?

  1. I. The statement of net assets for proprietary funds.
  2. II. The statement of revenues, expenditures, and changes in fund balances for the governmental funds.
    1. a. I only.
    2. b. II only.
    3. c. Both I and II.
    4. d. Neither I nor II.