A reconciliation from Proprietary funds statements to government-wide statements is not necessary because …
A) They both use the same measurement focus and basis of accounting (economic resources, accrual).
B) They both use the same measurement focus and basis of accounting (current financial resources, modified accrual)
C) They use a different measurement focus and basis of accounting.
D) They use a different measurement focus and basis of accounting

Question

Quizplus · Accepted Answer

Proprietary funds statements and government-wide statements both use the same measurement focus and basis of accounting (economic resources, accrual), so a reconciliation is not necessary. Reconciliations are typically required when there are differences in measurement focus or basis of accounting between two financial statements.

A Reconciliation from Proprietary Funds Statements to Government-Wide Statements Is