Which basis of accounting is used for the basic governmental functions of state and local governments?
A)Cash basis of accounting
B)Modified accrual basis of accounting
C)Accrual basis of accounting
D)Regulatory basis of accounting

Question

Quizplus · Accepted Answer

The modified accrual basis of accounting is used for the basic governmental functions of state and local governments. This basis of accounting recognizes revenues when they become both measurable and available and recognizes expenditures when the fund liabilities are incurred. It is a hybrid of cash and accrual accounting that is designed to provide a more accurate picture of a government's financial position and operating results.

Which Basis of Accounting Is Used for the Basic Governmental