Explain in your own words why it is necessary to conduct reconciliations for the differences between the governmental and government-wide financial statements. What sorts of reporting differences are explained in reconciliations? Also, explain why the differences between accrual accounting and modified accrual are significant to such reconciliations.

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Differences in the classification as well as differences in the measurement focus and basis of accounting cause the amounts reported in the governmental activities in governmentwide financial statemen... View the full answer