Which Statement is presented using Accrual Basis of Accounting?
A) Governmental Fund Statements
B) Government-Wide Financial Statements
C) Statement of Revenues, Expenditure and changes in Fund Balances
D) A and C

Question

Quizplus · Accepted Answer

The government-wide financial statements use the accrual basis of accounting, which recognizes revenues when earned and expenses when incurred, regardless of when cash is received or paid. The governmental fund statements use the modified accrual basis, which recognizes revenues when they become measurable and available and recognizes expenditures when the related liability is incurred, except for long-term debt and capital assets. The statement of revenues, expenditures and changes in fund balances also uses the modified accrual basis. Therefore, the only choice that represents the accrual basis of accounting is B.

Which Statement Is Presented Using Accrual Basis of Accounting