When preparing government-wide statements, enterprise funds must be adjusted to reflect accrual basis.

Question

Quizplus · Accepted Answer

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. No adjustment is necessary because enterprise funds use the accrual basis.

When Preparing Government-Wide Statements, Enterprise Funds Must Be Adjusted to Reflect