ExpertHard1 markMultiple Choice
CPA · Question 45 · Area 4: State and Local Governments
Which of the following funds uses the Current Financial Resources Measurement Focus and Modified Accrual Basis of Accounting?
Which of the following funds uses the Current Financial Resources Measurement Focus and Modified Accrual Basis of Accounting?
Answer options:
A.
Capital Projects Fund
B.
Internal Service Fund
C.
Enterprise Fund
D.
Custodial Fund
How to approach this question
Mnemonic: GRaSPP funds are Modified Accrual. SE (Proprietary) and CIPPOE (Fiduciary) are Full Accrual.
Full Answer
A.Capital Projects Fund✓ Correct
A
The Capital Projects Fund is a Governmental Fund. All Governmental Funds use the Current Financial Resources Measurement Focus and Modified Accrual Basis.
Common mistakes
Thinking Internal Service is governmental (it's proprietary).
Practice the full CPA FAR Practice Exam
50 questions · hints · full answers · grading
More questions from this exam
Q1According to the FASB Conceptual Framework, which of the following statements correctly describes...HardQ2On October 1, Year 1, Host Co. committed to a plan to dispose of a major component of its busines...HardQ3A company has a debt covenant requiring a current ratio of at least 2.0. On December 31, Year 1, ...HardQ4Orion Corp. reports under US GAAP. In preparing its statement of cash flows for the year ended De...HardQ5Parent Co. owns 80% of Sub Co. During Year 1, Parent sold inventory to Sub for $500,000. The cost...Hard