Accounting Questions
Accounting Questions California State University Northridge Accounting 475 Spring 2022 Homework 1 Question 5
5. The private purpose funds share the same measurement focus and basis of accounting with all of the following funds, except:
A. Pension funds.
B. Permanent funds
C. Internal service funds
D. Investment trust funds.
Answer
B. Permanent funds.
Explanation.
Permanent funds use the modified accrual basis to achieve a financial resources measurement focus, while the private purpose funds use the accrual basis of accounting to achieve an economic resources measurement focus.