In the Two-Worksheet Approach, What Type of Adjustment Will Be

question 37

Multiple Choice

In the two-worksheet approach, what type of adjustment will be necessary for interest payable on the balance sheet conversion worksheet?

• A) No adjustment is necessary for interest payable. This amount is the same in the fund statements and the government-wide statements.
• B) Interest on long-term debt that has been incurred but not paid will need to be added to the interest payable reported on the governmental funds balance sheet.
• C) Interest paid this year that is attributable to the previous year accrual for long-term debt will need to be deducted from interest payable reported on the governmental funds balance sheet.
• D) The net change in accrued interest payable on long-term debt from the beginning of the year to the end of the year will be added to the amount of interest payable reported on the governmental funds balance sheet.

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