If an entity adopts a full accrual basis of accounting, its measurement focus will automatically be on all economic resources.

Question

Quizplus · Accepted Answer

This statement is true. The full accrual basis of accounting requires that all economic resources and obligations be recognized in the financial statements, regardless of whether cash has been paid or received. Therefore, the measurement focus is on all economic resources.

If an Entity Adopts a Full Accrual Basis of Accounting