As compared with modified accrual accounting, full accrual accounting for govern
ID: 2577258 • Letter: A
Question
As compared with modified accrual accounting, full accrual accounting for governments:
A.
More accurately monitors whether the government’s activities are within the constraints of the legal budget
B.
Provides more complete information on the government’s ability to pay creditors
C.
Provides more accurate information on internal and external constraints on the ability of the government to spend resources
D.
More accurately reports the impact of current activities on future financial condition
A.
More accurately monitors whether the government’s activities are within the constraints of the legal budget
B.
Provides more complete information on the government’s ability to pay creditors
C.
Provides more accurate information on internal and external constraints on the ability of the government to spend resources
D.
More accurately reports the impact of current activities on future financial condition
Explanation / Answer
Ans: A)More accurately monitors whether the government’s activities are within the constraints of the legal budget
Reason: Accrual Method of accounting recognise the expenses when they are incurred regardless of the payment status . thus helps to keep a monitor of all the activities and the related cost.
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