Measurement Focus Basis of Accounting

Question 1

What is the measurement focus of the modified accrual basis?

Answer 1

• Flow of “financial” resources

- Financial position

Question 2

What is the measurement focus of the full accrual basis?

Answer 2

• Flow of “economic resources”, “income determination”, “capital maintenance”
• Financial position

Question 3

When is revenue recognized under modified accrual basis? (Remember 60 day rule)

Answer 3

-When “measurable and available”

Question 4

When are expenditures recognized under modified accrual basis?

Answer 4

-In general when measurable and incurred, except for on:
General Long Term Debt (when due)
Inventoriable materials/supplies- when purchased or used
Prepaid items- when purchased or used

Question 5

What are Other Financing Sources/Uses?

Answer 5

-Transfers between Funds