In Accounting for State and Local Governments the Modified Accrual

question 11

Multiple Choice

In accounting for state and local governments the modified accrual basis is required for

• A) Proprietary and fiduciary funds.
• B) Governmental funds.
• C) Governmental and fiduciary funds.
• D) Governmental and internal service funds.

---

Definitions:

Debt Restructuring

The process by which terms of an existing debt are modified, often involving the reduction of the debt and/or extension of payment terms.

Common Stock

Represents equity ownership in a corporation, providing holders with voting rights and a share in the company's profits through dividends.

Note Payable

A written agreement to pay a certain sum of money, typically with interest, at a future date.

IFRS

A global framework for financial reporting, International Financial Reporting Standards are accounting standards established by the International Accounting Standards Board (IASB).