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, such as the general fund, special revenue funds, and capital projects funds, are presented using the Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting. This is because these funds focus on the inflows and outflows of expendable financial resources within a short time frame, usually one fiscal year. The Modified Accrual Basis of Accounting recognizes revenues when they are measurable and available and recognizes expenditures when the related fund liability is incurred.

The Fund Statements for Governmental Funds Are Presented Using the