What is one of the outcomes of making adjustments for the government-wide statements?

Making adjustments for the government-wide statements typically involves reclassifying the accounting treatment of financial elements in a way that reflects the overall economic resources and obligations of a government. Specifically, under these adjustments, expenditures are recognized as expenses to more accurately represent the use of resources during the period. This reflects a broader understanding of financial performance, aligning with the accrual basis of accounting used in government-wide financial statements.

In government-wide statements, the focus shifts from individual funds to the government as a whole. This means that expenditures—previously recorded in a fund-based context—are transformed to show their impact on overall financial performance as expenses, which are essential for assessing profitability and financial health.

The other options do not align with the outcomes of adjustments for government-wide statements. Turning expenditures into assets does not reflect the nature of expenditures, which are typically outflows that consume resources rather than create future economic benefits. Eliminating all revenues does not represent a realistic or accurate portrayal of a government's financial situation, as revenues are vital for maintaining operational functions. Lastly, stating that only expenditures are affected overlooks the broader scope of adjustments, which also include revenues, assets, and liabilities. Thus, representing expenditures as expenses is a key and correct aspect of the adjustments made in government-wide financial