B is corrent. GASB 34 requires that the government-wide financial statements use full accrual accounting and the economic resources measurement focus. The economic resources measurement focus is consistent with the use of full accrual accounting. For example, the reporting of capital assets on the Statement of Net Position is consistent with the economic resources measurement focus. The current financial resources measurement focus is consistent with the modified accrual basis of accounting. Under the current financial resources measurement focus, capital assets are not reported on the balance sheet because they are not financial resources. Financial resources consist of cash and items expected to be realizable into cash.
A is incorrect. GASB 34 requires that the government-wide financial statements use full accrual accounting and the economic resources measurement focus.
C is incorrect. GASB 34 requires that the government-wide financial statements use full accrual accounting and the economic resources measurement focus.
D is incorrect. GASB 34 requires that the government-wide financial statements use full accrual accounting and the economic resources measurement focus.
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