Which of the Following Is Not an Accepted Modification of the Accrual

question 22

Multiple Choice

Which of the following is not an accepted modification of the accrual basis concerning the recognition of expenditures in governmental funds?

• A) Vacations and sick leave should never be accrued.
• B) Capital assets should be reported as expenditures when the assets are acquired.
• C) Inventory and the costs of using supplies may be accounted for using the consumption method.
• D) Claims and judgments should be reported as expenditures only insofar as they will be paid out of current financial resources.

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Definitions:

Logical Approach

A method of problem-solving or analysis that is based on clear, rational principles and step-by-step procedures.

Solve Problems

The process of identifying a challenge and finding an effective solution for it.

Opportunities

Favoured circumstances or occasions that are likely to lead to a beneficial outcome or advancement.

Emotional Response

The feelings elicited in an individual by external stimuli or internal thoughts, which can influence decision-making and perception.