In order to convert the governmental fund statement of revenues, expenditures, and changes in fund balances to a government wide statement of activities, which of the following activities is necessary? 1)
Eliminate capital outlay expenditures
2)
Reclassify revenues between program revenues and general revenues
3)
Record bad debt expenses
4)
Convert from Economic flow of resource method of account to current financial resources modified accrual based accounting
A) 1, 3, 4
B) 1, 2, 3
C) 1, 2, 3, 4
D) 1, 2, 4

Question

Quizplus · Accepted Answer

To convert to a government-wide statement, capital outlay expenditures are eliminated, revenues are reclassified, and bad debt expenses are recorded. The conversion is from modified accrual to full accrual, not the other way around.

In Order to Convert the Governmental Fund Statement of Revenues