Chapter 20: Preparing Governmental Financial Statements

In this section

• Modified Accrual vs. Full Accrual Conversions
  Learn how to effectively convert governmental fund financial statements (using modified accrual) to government-wide statements (using full accrual), focusing on capital assets and long-term liabilities.
• Budgetary Accounting, Encumbrances, and Lapsing
  Learn how state and local governments handle budgetary accounts, record encumbrances, and manage lapsing vs. nonlapsing appropriations in financial statements.
• Governmental Fund Statements
  Explore the fundamentals of preparing governmental fund balance sheets and statements of revenues, expenditures, and changes in fund balances—including measurement focus, basis of accounting, and real-world examples.
• Proprietary and Fiduciary Fund Statements
  Explore the structure, preparation, and reporting requirements of Proprietary and Fiduciary Fund Statements under governmental accounting, including real-world examples, best practices, and essential guidance for CPA exam readiness.