Arguments Against the Adoption of Accrual Accounting,and Hence for the Retention

question 16

Multiple Choice

Arguments against the adoption of accrual accounting,and hence for the retention of fund accounting,for the government sector include:

• A) there is more continuity with fund accounting
• B) fund accounting provides a better picture of the public sector's assets and liabilities than is possible under accrual accounting
• C) fund accounting is best suited to meet the accountability objective of public sector financial reporting
• D) fund accounting allows a measurement of the full cost of providing goods and services