The two key objectives for government financial reporting are to indicate the extent to which interperiod equity is achieved and to demonstrate whether resources were acquired and used according to the legally adopted budget.

Question 3 options:

True

False

Question 4 (1 point)

Compared to accrual accounting, the recognition of revenues in modified accrual accounting is:

Question 4 options:

Equally stringent

Less stringent

More stringent

Question 5 (1 point)

Saved

The following assets and liabilities would not appear on a financial statement prepared using modified accrual accounting except:

Question 5 options:

Other post-employment benefit (OPEB) liabilities

Notes payable

Property, plant, and equipment

Taxes receivable