Which Statement Below Is Incorrect with Respect to the Government-Wide

Multiple Choice

Which statement below is incorrect with respect to the Government-wide financial statements?

A) All governmental fund categories must convert to the modified accrual basis of accounting.
B) It is necessary to eliminate interfund balances within the governmental funds.
C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements.
D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.