Which of the Following Statements Is not true Regarding Modified

question 24

Multiple Choice

Which of the following statements is not true regarding modified accrual accounting?

• A) Expenditures and fund liabilities are recorded when goods and services are received.
• B) Debt service expenditures for principal and interest are accrued.
• C) Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.
• D) Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

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Definitions:

Intangible Asset

An asset that lacks physical substance, such as patents, trademarks, and copyrights, holding value for a business.

Land

A non-depreciable asset representing the earth's surface that a business owns for operation purposes.

Intangible Asset

An Intangible Asset is a non-physical asset possessed by a company, such as intellectual property, goodwill, and licenses, offering future economic benefits.

Goodwill

When a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.