What basis of accounting is used in the Statement of Net Costs prepared by a federal agency?

Question

Quizplus · Accepted Answer

The Statement of Net Costs prepared by a federal agency is based on the accrual basis of accounting, which recognizes revenue when it is earned and expenses when they are incurred, regardless of when the money is actually received or paid. This provides a more accurate picture of the financial position and performance of the agency. The other options (A, C, D) are not commonly used in federal financial reporting.

What Basis of Accounting Is Used in the Statement of Net