In a governmental fund, expenditures for wages and salaries should be recognized in the period in which the employees earn them.

Question

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According to the accrual basis of accounting, expenditures for wages and salaries should be recognized in the period in which the employees earn them, even if the payment is not made until a later period. This is consistent with the recognition of revenues, which are recognized in the period in which they are earned, regardless of when the cash is received.

In a Governmental Fund, Expenditures for Wages and Salaries Should