Chapter 2, governments should, and most do, maintain their accounts on their budgetary basis of accounting during the year. For the many governments that have a budgetary basis different than GAAP, additional modifications—typically in the form of worksheet adjustments—are required to develop the GAAP fund financial statements. Government-wide financial statements present a government’s financial information at a different level of aggregation and, for many activities, using a different basis of accounting…
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