The Modified Accrual Basis of Accounting Is Used in Presenting

question 13

Multiple Choice

The modified accrual basis of accounting is used in presenting the fund financial statements of the governmental funds because

• A)it is the superior method of accounting for the economic resources of any entity.
• B)it provides information as to the extent the entity achieved interperiod equity.
• C)it is budget oriented while facilitating comparisons among entities.
• D)it results in accounting measurements based on the substance of transactions.

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Definitions:

Intoxicated

A state of being impaired, typically due to the consumption of alcohol or drugs, affecting one's cognitive and physical abilities.

Voidable Option

A contract provision that allows one party to void the contract under certain circumstances, making it enforceable at the discretion of one party.

Status Quo

The existing state of affairs or current condition or situation, which is often maintained or referred to in discussions of change.

Contract Creation

The process of forming an agreement between parties that is legally enforceable.