A  statement  of  this  kind  is  known  as  a  "consolidated  balance
sheet."  In  such  a  statement  assets  of  the  same  kind  are  com-
bined into  a  single  total  without  regard  to  the  several  cor-
porate or  proprietary  units  to  which  they  relate;  liabilities  of
like  character  are  treated  in  a  similar  manner.  The  result  is
a  series  of  aggregates  of  assets  and  liabilities  classified  accord-
ing to  character,  and  a  surplus  balance  for  the  group  of  enter-
prises as  a  whole.
In  government  accounting,  forms  of  consolidated  balance
sheets  have  been  introduced  that  differ  in  principle  from  the
commercial  type  in  that  they  combine  assets  and  liabilities  that
relate  to  distinct  responsibilities  rather  than  assets  and  liabili-
ties of  separately  financed  organizations  of  common  owner-
ship. There  are  several  forms  of  balance  sheets  used  at  the
present  time  to  reflect  the  financial  condition  of  cities.  In  the
pages  that  follow  an  attempt  is  made  to  describe  these  various

forms.
Under  the  present  practice  of  preparing  government  balance
sheets  in  the  United  States,  there  are  four  degrees  in  the  con-
solidation of  the  main  classes  of  assets  and  liabilities  accord-


242    GOVERNMENT  ACCOUNTING  AND  REPORTING

ing  as  they  are  consolidated  into  four,  three,  two,  or  one  group.
In  the  pages  that  follow  these  four  degrees  of  consolidation
are  discussed,  with  special  reference  to  examples  that  exist
in  actual  practice.
Consolidation  into  Four  Main  Groups.  By  consolidation
into  four  main  groups  is  meant  the  bringing  together  of
all  the  assets  and  liabilities  of  a  given  main  class  so  as  to
produce  the  following  main  groups :

i.     Current  assets,  liabilities,  and  reserves.
2.  Capital  assets,  liabilities,  and  reserves.
3.  Sinking  fund  assets,  liabilities,  and  reserves.
4.  Trust  and  special  fund  assets  and  liabilities.
