Under Modified Accrual Accounting, When Should an Expenditure Be Recorded

question 75

Multiple Choice

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

• A) At the end of each accounting period.
• B) When payment is due within one fiscal year.
• C) When it reduces current financial resources.
• D) When cash is available to pay the interest.
• E) When the interest is incurred.

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