Government-wide financial statements use the economic resources measurement focus and the accrual basis of accounting.

Question

Quizplus · Accepted Answer

This is the standard accounting method used by the U.S. federal government for financial statements. The economic resources measurement focus means that the statements report assets, liabilities, and net position, as opposed to focusing solely on cash inflows and outflows. The accrual basis of accounting means that transactions are recognized when they occur, not when cash is received or disbursed.

Government-Wide Financial Statements Use the Economic Resources Measurement Focus and the Accrual