The Modified Accrual Basis of Accounting Is Used for

question 24

Multiple Choice

The modified accrual basis of accounting is used for

• A)governmental funds.
• B)proprietary funds.
• C)internal service funds.
• D)both A and C.

---

Definitions:

Financial Statements

Written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.

Year Period

Year period refers to a span of 12 months used for financial, reporting, or operational purposes, typically starting on January 1st and ending on December 31st.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (or financial statements) is represented as a proportion of the total account.

Ford Motor Company

An American multinational automaker headquartered in Dearborn, Michigan, known for its production of cars and commercial vehicles.