Government-wide financial statements are prepared using the accrual basis of accounting.

Question

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Government-wide financial statements are prepared using the accrual basis of accounting to provide a more complete and accurate picture of the government's financial position, performance, and cash flows. This includes recognizing revenues when earned and expenses when incurred, regardless of when cash is received or paid.

Government-Wide Financial Statements Are Prepared Using the Accrual Basis of Accounting