Government Fund Statements Use the Modified Accrual Basis, While Government-Wide

question 82

True/False

Government fund statements use the modified accrual basis, while government-wide, proprietary fund and fiduciary funds use accrual basis.

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Definitions:

Summarized Financial Information

A condensed version of financial statements that presents the key figures of a company's financial performance and position.

Seasonal Revenues

Income generated by a business that varies depending on the time of year, often due to consumer demand patterns.

Capital Leases

A capital lease is a lease considered to have the economic characteristics of asset ownership for accounting purposes.

Changes in Accounting Principles

Adjustments made to the accounting methodology used by a company, which could significantly affect the financial statements.