The Modified Accrual Basis of Accounting Is Used in Presenting

question 61

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 ensures the entity achieved interperiod equity.
• C) facilitates comparisons among entities by standardizing reporting for all non-Federal governments
• D) it results in accounting measurements based on the substance of transactions.

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Definitions:

Rational

Refers to decision-making that is based on logic and reason, often assuming that individuals choose the option with the greatest personal benefit.

Free Money

Resources or funds received without the requirement for repayment, often perceived as grants or gifts.

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A service that broadcasts audio content to the public through radio waves or digital transmissions.

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Economic analysis involves examining data and using economic theory to understand and predict economic phenomena and inform decisions.