The fund statements for governmental funds are presented using the
A) Economic Resources Measurement focus and the Accrual Basis of Accounting
B) Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting
C) Current Financial Resources Measurement focus and the Accrual Basis of Accounting
D) Economic Resources Measurement focus and the Modified Accrual Basis of Accounting

Question

Quizplus · Accepted Answer

Governmental funds follow the Current Financial Resources Measurement focus, which means that only current assets and liabilities are reported in the financial statements. They also use the Modified Accrual Basis of Accounting, which means that revenues are recognized when they are both measurable and available, and expenditures are recognized when the related liability is incurred.

The Fund Statements for Governmental Funds Are Presented Using the