Under Modified Accrual Accounting, When Should an Expenditure Be Recorded

question 75

Multiple Choice

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

• A) At the end of each accounting period.
• B) When payment is due within one fiscal year.
• C) When it reduces current financial resources.
• D) When cash is available to pay the interest.
• E) When the interest is incurred.

---

Definitions:

Hands-On

Involving or allowing direct involvement or physical contact; often used to describe practical or interactive activities or experiences.

Exhibits

Displays or presentations, often in museums or galleries, that showcase art, historical items, or scientific concepts to the public.

Correct Verb

Selecting and using the appropriate verb form in a sentence to match the subject and tense.

Correct Verb

The use of an appropriate action word in a sentence that accurately aligns with the subject and tense.