When converting from fund financial statements to government-wide statements, it is necessary to eliminate transfers that are between the categories of governmental activities and business-type activities.

Question

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Balances from the enterprise funds' Statement of Net Position and Statement of Revenues, Expenses and Changes in Fund Net Position are entered directly to the business-type activities sections of the government-wide statements. It is not necessary to eliminate transfers between governmental activities and business-type activities.

When Converting from Fund Financial Statements to Government-Wide Statements, It