Under Modified Accrual Accounting, When Should an Expenditure Be Recorded

question 31

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 payment is due.
• D) when cash is available to pay the interest.
• E) when the interest is incurred.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, controlling basic emotions and drives such as fear, pleasure, and anger.

Emotion

A complex psychological state that involves a subjective experience, a physiological response, and a behavioral or expressive response.

Aphagia

The inability to swallow or the loss of swallowing reflex, often due to neurologic or muscular disorders.

Hyperphagia

Overeating that leads to significant weight gain.