Governmental Fund Financial Statements Are Prepared Using the Modified Accrual

question 51

True/False

Governmental fund financial statements are prepared using the modified accrual basis of accounting.

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Definitions:

Lump Sum

A one-time payment made for a particular purpose, rather than recurring payments over time.

Future Value

The amount of money an investment is expected to grow to over a period of time when interest or dividends are reinvested.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.