Under the modified accrual basis of accounting used by governments, transactions that result in long-term liabilities
A) are included on the fund statements as an expenditure.
B) are included as a contra-account to revenue.
C) are not recorded as expenditures.
D) hidden for 10 years from the taxpayers.

Question

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, transactions that result in long-term liabilities are not recorded as expenditures in the fund statements. Instead, the focus is on financial resources that are available in the short term, typically within the fiscal year.

Under the Modified Accrual Basis of Accounting Used by Governments