The required reconciliation of the governmental fund balance sheet to the governmental activities statement of net position does not include adjustments related to

Question

Quizplus · Accepted Answer

Interfund charges for services are eliminated in the process of consolidation and do not require adjustments in the reconciliation between the governmental fund balance sheet and the governmental activities statement of net position. Adjustments for capital assets, deferred revenue, and long-term liabilities are necessary to transition from the modified accrual basis of accounting used in the fund financial statements to the full accrual basis used in the government-wide financial statements.

The Required Reconciliation of the Governmental Fund Balance Sheet to the Governmental