Choice "A" is correct. Neither the general fund nor the permanent fund will use the economic resources measurement focus. Both funds are governmental funds that use the financial resources measurement focus. The measurement focus of governmental funds is on the determination of current financial position and changes in current financial position (sources, uses, and balances of financial resources) rather than on capital maintenance or net income determination. Proprietary and fiduciary funds use the economic resources measurement focus.
Measurment focus
| Current financial resources
| Economic Resources
|
|---|
Generic funds | Governmental | Proprietary | Fiduciary |
Fund structure | GRaSPP | SE | PAPI |
Choice "c" is incorrect. Neither the general fund nor the permanent fund will use the economic resources measurement focus. Both funds are governmental funds that use the financial resources measurement focus.Choice "d" is incorrect. Neither the general fund nor the permanent fund will use the economic resources measurement focus. Both funds are governmental funds that use the financial resources measurement focus.Choice "b" is incorrect. Neither the general fund nor the permanent fund will use the economic resources measurement focus. Both funds are governmental funds that use the financial resources measurement focus.
