Government-wide statements are prepared using the accrual basis; therefore,governmental fund-basis statements need to be adjusted from their original modified accrual basis.

Question

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Government-wide statements are prepared using the accrual basis which is different from the modified accrual basis used in governmental fund-basis statements. Therefore, to ensure consistency and comparability, adjustments need to be made to the governmental fund-basis statements to convert them into accrual basis statements.

Government-Wide Statements Are Prepared Using the Accrual Basis; Therefore,governmental Fund-Basis