8) Governmental fund financial statements are prepared on the ________ basis of accounting. Proprietary fund financial statements are prepared on the ________ basis of accounting. A) modified accrual; modified accrual B) accrual; fund C) modified accrual; accrual D) blended; discrete

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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8) Governmental fund financial statements are prepared on the ________ basis of accounting. Proprietary fund financial statements are prepared on the ________ basis of accounting.

A) modified accrual; modified accrual

B) accrual; fund

C) modified accrual; accrual

D) blended; discrete

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Modified Accrual Accounting is alternative method of book keeping. This method combines accrual basis with cash basis accounting. It follows cash basis to record short term events and accrual method to record long term events

Accrual Method: It is an accounting method in which revenue or expenses are recorded when transactions occurred not at the time of payment made or received

 

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