Which of the following is true regarding modified accrual accounting?

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Under modified accrual accounting, revenues are recognized when measurable and available to finance expenditures of the current period. Expenditures are decreases in net financial resources and are generally recognized when the liability is incurred. Generally, expenditures are recorded and fund liabilities are recognized when goods and services are received, regardless of whether resources are available in the fund. Debt service expenditures for principal and interest are not accrued. They are recorded when due and are recognized and fund liabilities are recorded on the maturity date. As a result, many expenditures are accrued, even in governmental funds. Governmental funds use modified accrual accounting while government-wide statements and proprietary and fiduciary funds use accrual accounting.

Which of the Following Is True Regarding Modified Accrual Accounting