For fund financial statements, the measurement focus and basis of accounting used by governmental fund types are

Question

Quizplus · Accepted Answer

The measurement focus of governmental fund types is on current financial resources and the basis of accounting used is modified accrual accounting. This means that revenues are recognized when they become available and measurable and expenditures are recognized when the related liability is incurred. This differs from full accrual accounting which recognizes revenues when earned and expenses when incurred, regardless of when the actual inflows and outflows of cash occur.

For Fund Financial Statements, the Measurement Focus and Basis of Accounting