State and Local Government, Measurement Focus and Basis

Free CPA FAR (Financial Accounting & Reporting) lesson in Financial Reporting. 23 min read, ~3,415 words.

Governmental funds use modified accrual and current financial resources focus; only short-term inflows and outflows hit the books. Proprietary and fiduciary funds use full accrual and economic resources focus; long-term assets, debt, and depreciation all appear. Government-wide statements use full accrual and economic resources focus; combine governmental and business-type activities...

What this lesson covers

• Content
• Example 1
• Example 2
• Example 3
• Example 4
• Example 5
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• I.C1

Browse all free CPA FAR lessons or jump into free CPA FAR practice questions.