The fund balance reported in the Governmental Funds Balance Sheet must be reconciled to the total Net Position in the governmental activities column of the government-wide Statements of Net Position.

Question

Quizplus · Accepted Answer

The fund balance reported in the Governmental Funds Balance Sheet is a component of the net position reported in the government-wide Statements of Net Position. Therefore, a reconciliation is necessary to ensure consistency between the two financial statements.

The Fund Balance Reported in the Governmental Funds Balance Sheet