[Dan T]

I learned from Becker that modified accrual is used only by governmental funds and proprietary and fiduciary use the full accrual. Not sure if I’m allowed to post the question..sorry Jeff.

I saw modified accrual and immediately picked General. I guess if i kept on reading and saw the words agency fund I would have picked A. But i’m still confused.

A municipality that uses modified accrual and encumbrance accounting would use which of the following funds to account for agency fund cash?

A.

A fiduciary fund

B.

A proprietary fund

C.

The general fund

D.

A special assessment fund

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Anonymous]

This looks like one of those tricky little questions the AICPA uses to trip you up. The fact that the municipality uses modified accrual and encumbrance accounting has nothing to do with the agency fund. RTFQ helps a lot in this exam!

[Anonymous]

This looks like one of those tricky little questions the AICPA uses to trip you up. The fact that the municipality uses modified accrual and encumbrance accounting has nothing to do with the agency fund. RTFQ helps a lot in this exam!

[Dan T]

Ahhh that makes sense, it didn't even occur to me. Thanks.

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Dan T]

Ahhh that makes sense, it didn't even occur to me. Thanks.

AUD - 75 ☺
FAR - 65, 71, 70, 77 ☺
BEC - 80 ☺
REG - 73, 66, 79 ☺ 2/28/15

Done!

[Author]

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