Based on Cleveland's comments, one can surmise that the earliest operating statements for municipalities were prepared with a focus on cash flows or a cash measurement focus.
However, he differed from earlier writers as to the proper measurement focus for governmental operating statements by favoring a current financial resources rather than an economic resources approach.
The operating statements reveal the importance the committee placed on budgetary reporting.
Both Hylton  and Taussig  believed governmental operating statements should measure the cost of services and be prepared using an economic resources measurement focus (and accrual basis).
They argued that readers, particularly citizens, desired to judge the efficiency of government and that operating statements that reported expenses would provide information about the cost of services that could be used to measure efficiency [Davidson et al.
Operating statements for proprietary funds were prepared using the accrual basis of accounting.
Three Operating Statements for Activities Reported in Governmental Funds: Statement 34 requires three types of operating statements for activities reported in governmental funds--using potentially three measurement focuses.