Which of the Following Is not Required to Convert

question 71

Multiple Choice

Which of the following is not required to convert from the modified accrual basis to the accrual basis in preparing the government-wide statements?

• A) Record general capital assets
• B) Change expenditures for debt service principal to reduction of liabilities
• C) Make adjustments to revenues deferred because of the 60-day rule
• D) Accrue interest on enterprise fund bonds

---

Definitions:

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; a U.S. payroll tax to fund Social Security and Medicare benefits.

Employee's Portion

The part of payroll taxes and other deductions that employees are responsible for, which is withheld from their wages.

Taxes

Financial charges imposed by a government on individuals, corporations, and transactions to fund public spending and services.

Prepaid Workers' Compensation Insurance

An asset account that represents insurance payments made in advance for workers' compensation, which provides coverage for employee injuries on the job.