The government-wide statements should be prepared using

Question

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The government-wide statements are intended to show the overall financial position and results of operations of the government as a whole, which requires the use of the full accrual basis of accounting. This basis recognizes revenues when earned and expenses when incurred, regardless of when cash is received or paid. This provides a more comprehensive and accurate picture of the government's financial condition and performance. The cash basis and modified accrual basis, which focus on cash receipts and expenditures and current financial resources, respectively, are not appropriate for government-wide statements as they do not provide a complete picture of the government's long-term financial obligations and resources. The choice of modified accrual basis for governmental activities and full accrual basis for business-type activities could be used for separate financial statements of each activity, but not for government-wide statements.

The Government-Wide Statements Should Be Prepared Using