Compare the use of accrual accounting in federal government financial reporting with the use of accrual accounting in state or local government financial reporting
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Compare the use of accrual accounting in federal government financial reporting with the use of accrual accounting in state or local government financial reporting.
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- Describe the modified accrual foundation of accounting in further detail. What is the purpose of using it in financial statements for government-sponsored funds?What measurement focus is used in government-wide financial statements, and what system is applied to determine the timing of revenue and expense recognition?Explain the modified accrual accounting method. Why is it utilized in financial statements for government funds?
- How the hierarchy of U.S. generally accepted accounting principles for state and local government accounting can be used to resolve financial reporting issues?The modified accrual foundation of accounting should be explained. When preparing financial accounts for government entities, why is this method employed?Please describe the difference between government-wide financial statements and fund-basis financial statements. Why is it necessary for the federal government accounting standards to differ from state and local governments' accounting standards?
- Explain the modified accrual foundation for accounting. In the context of governmental funds, why does it appear in the financial reports?Define a financial reporting entity. Give an example of a primary government. Define and give an example of a component unit. Explain the two methods of reporting the primary government and component units in the financial reporting entity and when each is required.Multiple choice:  The accrual basis of accounting is used to account for revenues and expenditures reported in the financial statements of: a. Governmental funds. b. Proprietary funds. c. Governmental activities at the government-wide level. d. Business-type activities at the government-wide level.
- How would you define government accounting and what are the essential elements of government accounting?Which financial statements are prepared using modified accrual accounting? A) Proprietary fund financial statements. B) Governmental fund financial statements. C) Government-wide financial statements. D) Both A. and B. E) Both B and C.Governmental accounting normally takes three forms:cash basis modified accrual and