Which of the following is an attribute of modified accrual accounting?
A) Long-term assets and depreciation are recorded in the governmental fund balance sheet.
B) Revenues are generally recognized when measurable and available to finance the expenditures of the current period
C) Long-term debt is recorded in the governmental fund balance sheet
D) Expenses are recorded on the Statement of Changes in Fund Balance

Question

Quizplus · Accepted Answer

Under modified accrual accounting, revenues are generally recognized when measurable and available to finance the expenditures of the current period. Expenditures, not expenses, are recognized in the period in which the fund liability is incurred. Long-term assets and long-term debt are generally not recorded, although there are some exceptions.

Which of the Following Is an Attribute of Modified Accrual