The appropriate measurement focus for the business-type activities of the Raymond City is
A) Current financial resources.
B) Economic resources.
C) Both (a) and (b).
D) None of the above.

Question

Quizplus · Accepted Answer

The appropriate measurement focus for business-type activities, such as those operated by a city, is economic resources. This focus encompasses all assets and liabilities, not just current ones, reflecting a full accrual basis of accounting typical for business activities.

The Appropriate Measurement Focus for the Business-Type Activities of the Raymond