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 current financial resources measurement focus and modified accrual accounting.
C) Both of the above.
D) Neither of the above.

Question

Quizplus · Accepted Answer

The governmental fund statements are prepared using the current financial resources measurement focus and modified accrual accounting. Option A is incorrect as the governmental fund statements do not include the Statement of Cash Flows prepared on the direct method.

Which of the Following Is True Regarding the Governmental Fund