GAAP requires that the ACFR be accompanied by separate financial statements documenting

B The Annual Comprehensive Financial Report (ACFR) includes three categories of fund financial statements: Governmental funds Proprietary funds (e.g., enterprise and internal service funds) Fiduciary funds (e.g., pension trust, custodial funds) GAAP (specifically GASB Statement No. 34) requires separate financial statements for proprietary and fiduciary funds because they use different accounting bases (full accrual) than governmental funds (modified accrual). These are included in the basic financial statements section of the ACFR. Relevant Reference: GASB Statement No. 34 – Basic Financial Statements GASB Codification Section 2200 – Financial Reporting GFOA Governmental Reporting Guidelines Answer : B. fiduciary and proprietary funds