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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