The measurement focus of governmental fund accounting is on which of the following?
GASB Codification Section 1300 – Fund Accounting Show Process and Document Preparation: New York State has three broad fund categories that are further divided into fund types. A fund type is the grouping of all funds of similar characteristics and purposes. Only the minimum number of funds consistent with legal and operating requirements will be established since unnecessary funds result in inflexibility and inefficient financial administration. The fund categories and related fund types are listed below and are discussed in greater detail later in this section.
A list of the State's funds, classified by fund type, is set forth in Section 3.C - State Funds Included in the ACFR of this Chapter. A detailed description of the activities and characteristics of the different fund types is necessary for a complete understanding of governmental accounting. A discussion of the fund types used by the State, as well as the criteria used to make determinations regarding classification of a fund to a fund group, follow below. These are the funds through which most governmental functions are financed. The acquisition and use of the State's expendable financial resources (current assets) and the related current liabilities, as well as any deferred inflows and outflows of resources, are accounted for through these funds. All Governmental Funds use the modified accrual basis of accounting and their measurement focus is a flow of spendable financial resources. This fund category is comprised of the following fund types:
The required financial statements for the Governmental Funds are the:
These funds are used to account for business-type activities supported, at least in part, by fees or charges. There are two types of proprietary funds: enterprise funds and internal service funds. The State has no internal service funds on a GAAP basis.
The required financial statements for the Enterprise Funds are the:
These funds are used to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Trust Fund spending is controlled primarily through legal trust agreements and applicable State Laws. Equitable title to fund assets does not pass to the State by virtue of the custodial role. This fund category is comprised of the following three fund types:
The required financial statements for the Fiduciary Funds are the:
Guide to Financial Operations REV. 09/12/2022What is the measurement focus for governmental funds?The measurement focus for governmental fund operating statements should be the flow of financial resources measurement focus.
Which of the following is the measurement focus and basis of accounting for the government wide financial statements?What is the measurement focus and the basis of accounting for the government wide financial statements? Explanation: The government wide financial statements use both the economic resources focus and accrual accounting.
Which of the following is the measurement focus and basis?Which of the following would is the measurement focus and basis of accounting for governmental funds? The answer is current financial resources. Governmental funds use the modified accrual basis of accounting, which focuses on current financial resources.
What basis of accounting is used by governmental funds?Governmental funds use a modified accrual basis of accounting with the underlying premise being to report mostly readily available assets and liabilities expected to be used and paid back within a year.
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