The measurement focus and basis of accounting that are most unlike those used by business entities are those used by
A) Governmental funds.
B) Fiduciary funds.
C) Proprietary funds.
D) Contribution funds.

Question

Quizplus · Accepted Answer

Governmental funds use a measurement focus on current financial resources and a modified accrual basis of accounting, which differs significantly from the economic resources measurement focus and full accrual basis used by business entities. Fiduciary funds also use a modified accrual basis, but their measurement focus is on assets held in a trustee capacity for others, which may be more similar to certain types of business entities. Proprietary funds use a full accrual basis and economic resources measurement focus, which is similar to business entities that provide goods or services to the public. Contribution funds are not a recognized fund type in governmental accounting.

The Measurement Focus and Basis of Accounting That Are Most