Question

The current financial resources measurement focus is used to account for which of these?

a. All assets and liabilities in proprietary type funds
b. financial assets and near-term liabilities in governmental-type funds
c. Capital assets and long-term liabilities recorded in governmental funds
d. The timing of the recognition of revenues and expenses
e. None of the above

Answer 1

The current financial resources measurement focus is associated with governmental-type funds and involves tracking financial assets and near-term liabilities.

Step-by-step explanation:

The current financial resources measurement focus is used in governmental accounting and is specifically associated with the accounting for governmental-type funds. The correct answer to the question is b. financial assets and near-term liabilities in governmental-type funds. The focus on current financial resources is concerned with measuring the spendable or available net resources in the short term, which is typically one year. It does not encompass capital assets or long-term liabilities, which are instead reported in the government-wide financial statements where a different measurement focus and basis of accounting are used.