Governmental fund-basis statements are prepared using the________,and must be converted to the ________ to be incorporated in the government-wide statements.

Question

Quizplus · Accepted Answer

Governmental fund-basis statements are prepared using the modified accrual basis, which recognizes revenues when they become available and measurable, but expenditures when they are incurred. However, government-wide statements are prepared using the accrual basis, which recognizes revenues when earned and expenses when incurred. Therefore, governmental fund-basis statements must be converted to the accrual basis to be incorporated into the government-wide statements.

Governmental Fund-Basis Statements Are Prepared Using The________,and Must Be Converted