Which of the following is true regarding the governmental fund statements?
A) The governmental fund statements include a Statement of Cash Flows prepared on the direct method.
B) The governmental fund statements are prepared using the economic financial resources measurement focus and modified accrual accounting.
C) Both A and B are true.
D) Neither A nor B is true.

Question

Quizplus · Accepted Answer

Governmental funds do not prepare a Statement of Cash Flows. Governmental funds are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.

Which of the Following Is True Regarding the Governmental Fund