A is corrent. The requirement is to identify the number of funds that use the accrual basis of accounting. This Answer is correct because the economic resources measurement focus and accrual basis of accounting are used for the proprietary fund statements (Internal service fund and Airport enterprise fund), and the fiduciary fund statements (Pension trust fund). The other funds are governmental funds that are accounted for on the current financial resources measurement focus and modified accrual basis of accounting.
B is incorrect. The economic resources measurement focus and accrual basis of accounting are used for the proprietary fund statements (Internal service fund and Airport enterprise fund), and the fiduciary fund statements (Pension trust fund).
B is incorrect. The economic resources measurement focus and accrual basis of accounting are used for the proprietary fund statements (Internal service fund and Airport enterprise fund), and the fiduciary fund statements (Pension trust fund).
D is incorrect. The economic resources measurement focus and accrual basis of accounting are used for the proprietary fund statements (Internal service fund and Airport enterprise fund), and the fiduciary fund statements (Pension trust fund).
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