Which of the following is true regarding fiduciary fund financial statements?
A) Fiduciary fund financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Cash Flows prepared on the direct method.
B) Fiduciary fund financial statements are prepared on the current 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

Fiduciary fund financial statements include the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position, but not the Statement of Cash Flows. They are prepared using the economic resources measurement focus and accrual accounting, not the current financial resources measurement focus and modified accrual accounting.

Which of the Following Is True Regarding Fiduciary Fund Financial