Under GASB standards, which of the following funds uses the economic resources measurement focus and the accrual basis of accounting?

Answer options:

General Fund

Enterprise Fund

Capital Projects Fund

Debt Service Fund

How to approach this question

Memorize: Governmental Funds (GRaSPP) = Modified Accrual. Proprietary (SE) & Fiduciary (CIPPOE) = Full Accrual.

Full Answer

B.Enterprise Fund✓ Correct

Proprietary funds (Enterprise and Internal Service Funds) and Fiduciary Funds use the economic resources measurement focus and full accrual basis of accounting, similar to for-profit business entities. Governmental funds use the current financial resources measurement focus and modified accrual.

Common mistakes

Assuming all government funds use modified accrual.

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