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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Expert Solution
Step 1
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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