Under the Modified Accrual Basis of Accounting Used by a Governmental

Multiple Choice

Under the modified accrual basis of accounting used by a governmental entity, investment revenues for the current period should include

A) only interest and dividends received.
B) all interest and dividends received during the period plus all accruals of interest and dividends earned.
C) all interest and dividends received plus gains and losses on securities that were sold during the period.
D) all interest and dividends received, all gains and losses on securities sold and all changes in market values on securities held in the portfolio at year-end.