For fund financial statements, the measurement focus and basis of accounting used by governmental fund types are
A)current financial resources and modified accrual accounting.
B)economic resources and modified accrual accounting.
C)financial resources and full accrual accounting.
D)economic resources and full accrual accounting.

Question

Quizplus · Accepted Answer

Governmental fund types use the measurement focus of current financial resources and basis of accounting of modified accrual accounting for their fund financial statements. This means that only current assets and liabilities are recognized in these statements, and revenues are recognized when they are measurable and available. Modified accrual accounting also allows for the recognition of expenditures when they are incurred, but with some limitations.

For Fund Financial Statements, the Measurement Focus and Basis of Accounting