Which governmental funds use modified accrual accounting?

author: AcadiFi Team

Answer:

The governmental funds use the current financial resources measurement focus and modified accrual basis. The five governmental fund types are the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

The reason is fiscal accountability. The fund statements are designed to show near-term inflows, outflows, and available financial resources, not every long-term asset and liability. Government-wide statements provide the broader economic resources view.