Question

When preparing government-wide financial statements,the modified accrual basis governmental funds are adjusted for all of the following events except?

A) Change in current assets and current liabilities from year to year
B) Long-term debt related events
C) Internal service fund activities
D) Interfund activities

Answer 1

Answer: Change in current assets and current liabilities from year to year

Step-by-step explanation:

It should be noted that when preparing government-wide financial statements, the modified accrual basis governmental funds are adjusted for the long-term debt related events, the internal service fund activities and the interfund activities.

Therefore the correct option is A as th modified accrual basis government funds are not adjusted for the change in current assets and current liabilities from year to year.