In accounting for state and local governments the modified accrual basis is required for
A) Proprietary and fiduciary funds.
B) Governmental funds.
C) Governmental and fiduciary funds.
D) Governmental and internal service funds.

Question

Quizplus · Accepted Answer

The modified accrual basis is required for governmental funds in accounting for state and local governments. Proprietary and fiduciary funds use the accrual basis of accounting. Internal service funds may use either the modified accrual or accrual basis, depending on the specific circumstances.

In Accounting for State and Local Governments the Modified Accrual