Final answer:
The measurement focus and basis of accounting for governmental fund financial statements are economic resources and modified accrual, respectively.
Step-by-step explanation:
The measurement focus and basis of accounting that should be used for the governmental fund financial statements are:
Measurement focus: Economic resources
Basis of accounting: Modified accrual
Governmental fund financial statements are prepared using the measurement focus of economic resources, which means that the focus is on the availability and use of resources rather than the timing of cash flows. The basis of accounting used is modified accrual, which recognizes revenues when they are measurable and available and recognizes expenditures when they are incurred. This ensures that the financial statements provide a comprehensive and accurate representation of the financial position and operations of the governmental fund.