When Converting from Governmental Fund Financial Statements to the Governmental

question 58

True/False

When converting from governmental fund financial statements to the governmental activities column of the government-wide statements,it is necessary to make a number of adjustments,many of which convert from modified accrual accounting to accrual accounting.

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured as a part of a health care system.

Premiums

Payments made regularly to an insurance company or the additional amount above the normal price.

Private Insurance Companies

Independent firms that offer policies to individuals or entities to cover various risks in exchange for premium payments.

Health Care Costs

The expenses associated with medical services, treatments, medications, and hospital care provided to individuals.