Under the modified accrual basis of accounting, expenditures are generally recognized in the period that goods and services are received, but there are a number of exceptions to that rule.

Question

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Expenditures generally are recognized in the period goods or services are received. Some expenditures, such as those related to employee vacation leave that is paid upon retirement, are not recognized until the employee retires-that is, when the liability matures.

Under the Modified Accrual Basis of Accounting, Expenditures Are Generally