For fund financial statements, the measurement focus and basis of accounting used by governmental fund types are
A) current financial resources and modified accrual accounting.
B) economic resources and modified accrual accounting.
C) current financial resources and full accrual accounting.
D) economic resources and full accrual accounting.

Question

Quizplus · Accepted Answer

Governmental fund types use the current financial resources measurement focus and modified accrual basis of accounting. This approach emphasizes the flow of current financial resources rather than the acquisition and use of long-term capital assets or long-term debt.

For Fund Financial Statements, the Measurement Focus and Basis of Accounting