When converting the multiple governmental funds to the single entity represented by the governmental activities in the government-wide financial statements, which of the following adjustments will not be necessary?
A. Converting the cash account to reflect the different basis of accounting.
B. Adjusting for capital assets.
C. Adjusting for long-term liabilities.
D. Converting fund balance to net position.
Question 2
Which of the following is an example of an accrued expense?
a. Salary owed but not yet paid
b. Fees received but not yet earned
c. Supplies on hand
d. A two-year premium paid on a fire insurance policy
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