Is a typical conversion worksheet supposed to combine the preclosing trial balance for governmental funds and the closing balances of accounts for general government assets and liabilities?

A typical conversion worksheet is designed to bridge the gap between the modified accrual basis of accounting used by governmental funds and the full accrual basis used for government-wide financial statements. It effectively facilitates the correct presentation of financial information by reconciling the differences arising from the various accounting methods employed by different funds.

The worksheet does not combine the preclosing trial balance for governmental funds with the closing balances of accounts for general government assets and liabilities directly. Instead, it typically focuses on the adjustments necessary to convert the fund balances to the full accrual bases, which includes the adjustments for both assets and liabilities. Thus, it operates under the principle that assets and liabilities must be accounted for, but it does not combine them directly as part of a single balance representation in this manner.

Hence, the assertion that a typical conversion worksheet is supposed to combine these elements is not accurate, making the statement false. This clarity helps in understanding how conversion worksheets function within the broader context of governmental accounting, emphasizing separate treatment of fund balances and government-wide balances to ensure clarity and compliance with accounting standards.