Which Measurement Focus and Basis of Accounting Should an Investment $\begin{array} { l l }\quad \text { Measurement Focus }&\quad \quad \quad \text { Basis of Accounting } \end{array}$

question 37

Short Answer

Which measurement focus and basis of accounting should an Investment Trust Fund use? $\begin{array} { l l }\quad \text { Measurement Focus }&\quad \quad \quad \text { Basis of Accounting } \end{array}$
A) $\begin{array} { l l } { \text { Economic resources } } &\quad \quad \quad \quad \text { Modified accrual } \\\end{array}$
B) $\begin{array} { l l } \text { Current financial resources } &\quad \text { Modified accrual } \\\end{array}$
C) $\begin{array} { l l }\text { Economic resources } &\quad \quad \quad \quad \text { Accrual } \\\end{array}$
D) $\begin{array} { l l } \text { Current financial resources } &\quad \text { Accrual }\end{array}$

• A)\(\begin{array} { l l } { \text { Economic resources } } &\quad \quad \quad \quad \text { Modified accrual } \\\end{array}\)
• B)\(\begin{array} { l l } \text { Current financial resources } &\quad \text { Modified accrual } \\\end{array}\)
• C)\(\begin{array} { l l }\text { Economic resources } &\quad \quad \quad \quad \text { Accrual } \\\end{array}\)
• D)\(\begin{array} { l l } \text { Current financial resources } &\quad \text { Accrual }
• \end{array}\)

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Definitions:

Joint Control

A situation in an arrangement where more than one party has control together, requiring unanimous consent for decision-making.

Economic Entity

An organization or unit in the economy that is capable of conducting economic activities, such as businesses or households.

Contractually Agreed

Pertains to terms, conditions, or arrangements that have been explicitly consented to by all parties involved through a formal contract.

Partial Exemption Disclosures

Disclosures that allow entities to omit certain details from financial statements under specific circumstances, provided partial information is still disclosed.