Which of the following funds should use the modified accrual basis of accounting?
A)Private-purpose trust and agency funds.
B)Capital projects and special revenue funds.
C)Internal service and enterprise funds.
D)Debt service and private-purpose trust funds.

Question

Quizplus · Accepted Answer

Capital projects and special revenue funds should use the modified accrual basis of accounting. The modified accrual basis of accounting is used for governmental funds, which are funds used for specific governmental functions. Capital projects funds are used for the construction or acquisition of major capital facilities, and special revenue funds are used to account for specific revenue streams dedicated to particular purposes. Both of these funds focus on specific projects or programs and use the modified accrual basis to track their finances.

Which of the Following Funds Should Use the Modified Accrual