When preparing government-wide financial statements,the modified accrual based governmental funds are adjusted for all of the following events except:

Question

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Government-wide financial statements are prepared using the accrual basis of accounting, which requires adjustments for long-term debt, internal service fund activities, and interfund activities. However, changes in current assets and current liabilities are already captured in the modified accrual basis and do not require adjustment.

When Preparing Government-Wide Financial Statements,the Modified Accrual Based Governmental Funds