Which basis of accounting is used by funds that have a current financial resources measurement focus?
A)full accrual basis
B)cash basis
C)modified accrual basis
D)modified cash basis

Question

Quizplus · Accepted Answer

Funds that have a current financial resources measurement focus generally use the modified accrual basis of accounting, which recognizes revenues when they become measurable and available to finance current-year expenditures, and recognizes expenditures when the fund has a legal liability to pay them. This accounting basis is often used by governmental funds and other funds that focus on short-term financial planning and budgeting.

Which Basis of Accounting Is Used by Funds That Have