Which statement about the worksheet used to convert governmental fund data is FALSE?

In the context of governmental accounting, permanent accounts are those that maintain their balances over time, such as assets, liabilities, and net position. These accounts typically only change through transactions that affect the entity's financial position, such as revenues, expenditures, and inter-fund transfers.

During the conversion process using a worksheet, adjustments made to the data from governmental funds should reflect the allocations and combinations necessary for full accrual accounting. However, permanent accounts in this context are not altered; the adjustments primarily impact temporary accounts, which include things like revenues and expenditures for the fiscal period.

The statement noting that permanent accounts can be altered is considered false because the integrity of permanent accounts should be maintained in the conversion process, ensuring that only the temporary accounts undergo changes aligned with proper accounting practices. Therefore, the focus remains on adjusting temporary accounts to reflect the accrual basis of accounting, while ensuring that the overall financial position represented by permanent accounts remains consistent and unchanged.