The total fund balances reported in the total column of the fund basis statements must be reconciled to the total net assets presented in the governmental activities column of the government-wide Statement of Net Assets

Question

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This is because the fund basis statements report the financial activities of individual funds, while the government-wide Statement of Net Assets consolidates the financial information of all the funds into one entity. Therefore, it is necessary to reconcile the balances of the individual funds to the total net assets of the overall entity.

The Total Fund Balances Reported in the Total Column of the Fund