Question

Governmental fund-basis statements are prepared using the ________, and must be converted to the ________ to be incorporated in the government-wide statements

Answer 1

Governmental fund-basis statements are prepared using the Modified accrual basis, and must be converted to the accrual basis to be incorporated in the government-wide statements.

Accrual accounting is a method of financial accounting that allows an entity to record incoming revenue in their accounts even before payment for their product or service is received, and to deduct expenditure even before the payment is made.

Thus, even future transactions are recorded in the firm’s accounting books.

Modified accrual accounting is another financial accounting method. It is a combination of accrual accrual accounting and cash basis accounting. It records revenues and expenditures when receipts and liabilities are created.

It also leverages the simplicity of cash basis accounting.

To learn more about accrual basis accounting: brainly.com/question/13464862

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