Which of the Following Is True Regarding Modified Accrual Accounting

question 29

Multiple Choice

Which of the following is true regarding modified accrual accounting?

• A) Modified accrual accounting requires that all expenditures be recognized on the cash basis.
• B) Revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred, except for principal and interest on long-term debt.
• C) Modified accrual accounting is required for all fund financial statements.
• D) All of the above.

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Definitions:

Safety Testing

The process of evaluating a product or system to ensure it meets safety standards and regulations and does not pose a hazard to users.

Cash Discount

An incentive offered by sellers to encourage prompt payment, typically a percentage reduction from the invoice price if paid within a specified period.

Concrete Slab

A large, thick, flat piece of concrete, used as a base for construction projects such as floors, roads, or foundations.

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Acquisition Cost refers to the total cost incurred to obtain an asset, including the purchase price and all associated expenses such as delivery and installation.