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:

Months

Units of time, each roughly about 30 days long, used to measure the duration of a year.

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and use the bathroom for elimination.

Obstinate

Stubbornly refusing to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Lenient

Referring to a permissive or merciful approach, especially in the context of judgments or punishments.