Which of the Following Statements Is True

question 119

Multiple Choice

Which of the following statements is true?

• A) The modified accrual basis is a distinct system of accounting that contains financial statement elements that appear nowhere else. Among these are expenditures and fund balances.
• B) The modified accrual accounting used in governmental accounting is essentially equivalent to the cash basis accounting used by businesses.
• C) Governmental funds record may not record liabilities or accrue expenditures when payable.
• D) Revenues are recorded the same under accrual and modified accrual accounting. The difference in the two methods applies only to expenses/expenditures.