The federal government and state and local governments use the modified accrual basis of accounting.

Question

Quizplus · Accepted Answer

State and local governments use the modified accrual basis of accounting to account for their basic government functions and the accrual basis of accounting to account for business-type activities and for their government-wide financial statements. The federal government, however, only uses the accrual basis of accounting for financial reporting purposes.

The Federal Government and State and Local Governments Use the Modified