Discuss AGA GAFRB Exam Topic 1 Question 19

The measurement focus of the governmental fund level financial statements is

Amodified accrual basis.

Beconomic resources.

Ccurrent financial resources.

Daccrual basis.
Governmental fund financial statements (such as the General Fund, Special Revenue Funds, Capital Projects Funds) use the current financial resources measurement focus and the modified accrual basis of accounting. This focus reports inflows and outflows of current financial resources and excludes long-term assets and liabilities.
This differs from the government-wide financial statements, which use the economic resources measurement focus and full accrual basis.
Relevant Reference:
GASB Statement No. 34 -- Basic Financial Statements
GASB Codification Section 1600 -- Fund Accounting
GFOA Fund Accounting Guidance
Answer : C. current financial resources

Suggested Answer: C

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17 comments · newest first

Mirta 22 days ago

Exactly! Long-term assets don’t count here. C is the way to go.

Eleonora 28 days ago

I hope they don’t trick us with similar options. C is clear.

Orville 1 month ago

I remember reading that in GASB 34. C fits perfectly!

Xuan 1 month ago

C is definitely right. It focuses on current inflows and outflows.

Nana 1 month ago

A is for modified accrual, but C is more accurate for current resources.

Rosita 2 months ago

I feel confused about the differences. Why not A?

Carlota 2 months ago

Agreed! Modified accrual is key for those statements.

Blossom 2 months ago

I think the answer is C. current financial resources. It makes sense for governmental funds.

Belen 2 months ago

I don't know, I thought accrual basis was the way to go.

Ceola 2 months ago

Totally agree, C is the right choice!

Tyisha 2 months ago

Wait, so we ignore long-term assets? That's surprising!

Margot 3 months ago

I thought it was A at first, but C makes more sense.

Diego 3 months ago

It's definitely C, current financial resources!

Marguerita 3 months ago

I practiced a similar question last week, and it was about the modified accrual basis for governmental funds. I’m confident the answer is C, current financial resources.

Kanisha 3 months ago

I’m confused about the modified accrual basis versus the accrual basis. I think it’s C, but I might mix it up with the economic resources focus from the government-wide statements.

Jina 3 months ago

I remember studying that governmental funds focus on current financial resources, so I’m leaning towards C too. It’s just tricky to remember all the details!

Rory 4 months ago

I think the answer is C, current financial resources, but I’m not entirely sure about the differences between fund level and government-wide statements.

AGA GAFRB Exam - Topic 1 Question 19 Discussion