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.

Question

Quizplus · Accepted Answer

Under modified accrual accounting, expenditures for interest on long-term debt are recognized when the payment is due. This approach aligns with the focus on current financial resources and the timing of cash flows.

Under Modified Accrual Accounting, When Should an Expenditure Be Recorded