Which of the following is the appropriate basis of accounting for a custodial fund? Multiple Choice...
Which of the following is the appropriate basis of accounting for a custodial fund?
Multiple Choice
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Accrual basis.
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Modified accrual basis.
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Modified cash basis.
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Cash basis.
Homework Answers
The Answer is Accrual Basis.
Explaination:
Custodial fund is a type of Fiduciary funds.
Fiduciary fund financial information is presented by
1. Statement of fiduciary net position
2.Statement of changes in fiduciary net position.
And these are prepared using economic resources measurement focus and full accrual basis of accounting.
It means revenues are recognized as and when they earned and expenses are recognized as and when are they incurred in the reporting period.
So Basis of accounting for custodial fund is Accrual basis.
Add Answer to:
Which of the following is the appropriate basis of accounting
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