The fund basis statements for governmental funds are presented using the
A) Economic Resources Measurement focus and the Accrual Basis of Accounting
B) Current Financial Resources Measurement focus and the Accrual Basis of Accounting
C) Current Financial Resources Measurement focus and the Modified Accrual Basis of accounting
D) Economic Resources Measurement focus and the Modified Accrual Basis of Accounting

Question

Quizplus · Accepted Answer

The fund basis statements for governmental funds use the Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting. This means that only current assets and liabilities are recognized, and transactions are recorded on a cash basis, except for certain items such as capital assets and long-term debt. This is because governmental funds focus on short-term operations and budgetary control rather than long-term financial planning.

The Fund Basis Statements for Governmental Funds Are Presented Using