The Fund Balance reported in the Governmental Funds Balance Sheet must be reconciled to the Net Assets of Governmental Activities in the Statement of Net Assets.

Question

Quizplus · Accepted Answer

The Fund Balance reported in the Governmental Funds Balance Sheet represents the current financial resources of a government, while the Net Assets of Governmental Activities in the Statement of Net Assets represent the total financial position of the government. Therefore, a reconciliation is necessary to ensure consistency between the two statements.

The Fund Balance Reported in the Governmental Funds Balance Sheet