_____ Under the modified accrual basis of accounting, when are expenditures recognized in governmental funds (for the most part)?
A) When they are measurable and funds are available.
B) When they are paid.
C) When the liability is incurred.
D) When the related revenue is recognized.
E) None of the above.

Question

_____	Under the modified accrual basis of accounting, when are expenditures recognized in governmental funds (for the most part)?
A) When they are measurable and funds are available.
B) When they are paid.
C) When the liability is incurred.
D) When the related revenue is recognized.
E) None of the above.

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, expenditures are recognized when the liability is incurred, as long as it is measurable and expected to be paid from current financial resources.

_____ Under the Modified Accrual Basis of Accounting, When Are Expenditures