The expendable fund entity's measurement focus is on:
A) the flow of current financial resources.
B) the flow of economic resources.
C) the flow of revenue, expenses, and net income.
D) none of these.

Question

Quizplus · Accepted Answer

Expendable fund entities, such as governmental funds in the public sector, focus on the flow of current financial resources. This includes monitoring how cash and other financial assets that can be converted to cash flow in and out of the entity, rather than focusing on the full accrual accounting that includes all economic resources and obligations.

The Expendable Fund Entity's Measurement Focus Is On