_____ For governmental funds, what is the measurement focus at the fund-based reporting level?
A) Comparing revenues against expenses.
B) Comparing cash inflows against cash outflows.
C) Comparing revenues against the cost of providing services.
D) Comparing revenues against expenditures.
E) None of the above.

Question

_____	For governmental funds, what is the measurement focus at the fund-based reporting level?
A) Comparing revenues against expenses.
B) Comparing cash inflows against cash outflows.
C) Comparing revenues against the cost of providing services.
D) Comparing revenues against expenditures.
E) None of the above.

Quizplus · Accepted Answer

The measurement focus for governmental funds at the fund-based reporting level is on determining financial position and changes in financial position. This involves comparing revenues (inflows of resources) against expenditures (outflows of resources), not expenses. Expenses are used in accrual accounting, while expenditures are used in the modified accrual accounting of governmental funds.

_____ for Governmental Funds, What Is the Measurement Focus at the Fund-Based