Which of the Following Statements Is not true Regarding Modified

question 24

Multiple Choice

Which of the following statements is not true regarding modified accrual accounting?

• A) Expenditures and fund liabilities are recorded when goods and services are received.
• B) Debt service expenditures for principal and interest are accrued.
• C) Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.
• D) Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

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Definitions:

Monopoly Firms

Companies that are the sole providers of a product or service in a market, having no close substitutes and controlling market prices.

Higher Prices

Higher prices refer to an increase in the cost of goods or services, often reflecting changes in supply and demand, production costs, or inflation.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Control Resale

Policies or measures designed to regulate or restrict the resale of products or assets.