The basis of accounting that should be used in preparing fund financial statements is: $$\begin{array} { | l | l | l | }
\hline \text { Cuvernuental funds } & \text { Proprietary funds } & \text { Fiduciary funds } \
\hline \text { A) Modified accrual } & \text { Accrual } & \text { Modified accrual } \
\hline \text { B) Modified accrual } & \text { Modified accrual } & \text { Modified accrual } \
\hline \text { C) Modified accrual } & \text { Accrual } & \text { Accrial } \
\hline \text { D) Accrual } & \text { Accrual } & \text { Accrual } \
\hline
\end{array}$$
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

The basis of accounting that should be used in preparing fund financial statements is: $$\begin{array} { | l | l | l | } 
\hline \text { Cuvernuental funds } & \text { Proprietary funds } & \text { Fiduciary funds } \
\hline \text { A) Modified accrual } & \text { Accrual } & \text { Modified accrual } \
\hline \text { B) Modified accrual } & \text { Modified accrual } & \text { Modified accrual } \
\hline \text { C) Modified accrual } & \text { Accrual } & \text { Accrial } \
\hline \text { D) Accrual } & \text { Accrual } & \text { Accrual } \
\hline
\end{array}$$
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Quizplus · Accepted Answer

Governmental funds use the modified accrual basis of accounting, proprietary funds use the accrual basis, and fiduciary funds also use the accrual basis. This is reflected in choice C.

The Basis of Accounting That Should Be Used in Preparing