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

Question

Quizplus · Accepted Answer

Government-wide financial statements are prepared using the accrual basis of accounting, so the modified accrual basis of accounting used in governmental funds needs to be adjusted for any events that affect the financial position of the government as a whole. These events include capital asset related events, long-term debt related events, and internal service fund activities. Therefore, choice D, "All of the above" is the best answer.

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