For Fund Financial Statements, the Measurement Focus and Basis of Accounting

question 52

Multiple Choice

For fund financial statements, the measurement focus and basis of accounting used by governmental fund types are

• A) current financial resources and modified accrual accounting.
• B) economic resources and modified accrual accounting.
• C) current financial resources and full accrual accounting.
• D) economic resources and full accrual accounting.

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Definitions:

Purchases

Transactions in which goods or services are acquired in exchange for money, indicating consumer buying behavior or demand in an economy.

Tacos

A traditional Mexican dish consisting of a folded or rolled tortilla filled with various mixtures, such as seasoned meat, beans, cheese, and lettuce.

Milkshakes

A cold beverage made from blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.

Budget Line

A graphical representation showing all possible combinations of two goods that a consumer can afford with a given income and prices.