_____ Regarding external financial reporting for governmental units, which of the following reconciliations from the fund-based statements to the government-wide statements must be presented?

Question

Quizplus · Accepted Answer

The correct reconciliation for external financial reporting for governmental units is from the total fund balances of all governmental funds to the total net assets of all governmental funds and Internal Service Funds. This reconciliation is necessary because the fund-based statements (using the modified accrual basis) and the government-wide statements (using the accrual basis) report different aspects of the government's finances, and the inclusion of Internal Service Funds in the government-wide statements requires this specific reconciliation.

_____ Regarding External Financial Reporting for Governmental Units, Which of the Following