Which of the Following Is Not an Accepted Modification of the Accrual

Multiple Choice

Which of the following is not an accepted modification of the accrual basis concerning the recognition of expenditures in governmental funds?

A) Vacations and sick leave should never be accrued.
B) Capital assets should be reported as expenditures when the assets are acquired.
C) Inventory and the costs of using supplies may be accounted for using the consumption method.
D) Claims and judgments should be reported as expenditures only insofar as they will be paid out of current financial resources.