________ to be incorporated in the government-wide statements.

Question

Quizplus · Accepted Answer

Government-wide statements are required to be presented on the accrual basis of accounting, which means that revenues are recognized when they are earned and expenses are recognized when they are incurred, regardless of when cash is received or paid out. However, some governmental funds are maintained on the modified accrual basis (for example, the General Fund), which recognizes revenues when they are measurable and available, and expenditures when they are incurred, except for those related to long-term debt and capital assets. Therefore, the government-wide statements should include information on both the accrual basis (for example, the statements of activities and net position) and the modified accrual basis (for example, the reconciliation of the government-wide statements to the fund financial statements).

________ to Be Incorporated in the Government-Wide Statements