One of the required reconciliations in converting governmental fund financial statements to governmental activities statements at the government-wide level is an adjustment for internal service funds' assets, liabilities, operating income (loss), and transfers.

Question

Quizplus · Accepted Answer

This statement is correct. Internal service funds are used to provide goods or services to other departments or agencies within the same government entity, and they are presented as governmental activities in the government-wide financial statements. The conversion process requires adjusting for the assets, liabilities, operating income (loss), and transfers of these funds to accurately reflect their impact on the overall financial position and performance of the government.

One of the Required Reconciliations in Converting Governmental Fund Financial