Response to the following questions:
1. Identify the types of nonexchange revenues that are most likely to result in differences in the timing of recognition between the accrual and modified accrual bases of accounting.
2. The government-wide Statement of Net Assets separately displays governmental activities and business activities. Why are internal service funds most commonly displayed as governmental activities?
3. List some of the major adjustments required when converting from fund financial statements to government-wide statements.