Which of the following funds is accounted for on the modified accrual basis of accounting?
A)General fund.
B)Internal service fund.
C)Proprietary fund.
D)Pension trust fund.

Question

Quizplus · Accepted Answer

The general fund is the primary operating fund for government entities, and it is accounted for on the modified accrual basis of accounting. This means that revenues are recognized when they become measurable and available, and expenditures are recognized when the related liability is incurred, except for principal and interest on general long-term debt which are recognized when due. The other options, such as internal service fund, proprietary fund, and pension trust fund are accounted for on the full accrual basis of accounting or another basis specific to their type of operation.

Which of the Following Funds Is Accounted for on the Modified