Which of the following items would likely be in a reconciliation between the governmental fund financial statements and the governmental activities column in the government-wide financial statements?
A) The inclusion of long-term liabilities in the government-wide financial statements and not in the governmental fund financial statements.
B) The inclusion of depreciation of capital assets in the governmental activities column of the government-wide financial statements and not in the governmental fund statements.
C) The additional accrual of some revenues and expenses in the government-wide financial statements that were not made in the governmental fund financial statements.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the options listed would likely be part of a reconciliation between the governmental fund financial statements and the government-wide financial statements. Including long-term liabilities in the government-wide financial statements and not in the governmental fund financial statements is a common adjustment necessary to reflect the full extent of the government's obligations. The inclusion of depreciation of capital assets in the government-wide financial statements accounts for the gradual reduction in the value of the government's infrastructure and equipment over time. The addition of accruals in the government-wide financial statements accounts for differences in timing and the recognition of certain revenues and expenses that may not have been included in the governmental fund financial statements.

Which of the Following Items Would Likely Be in a Reconciliation