Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The modified accrual basis is a distinct system of accounting that contains financial statement elements that appear nowhere else. Among these are expenditures and fund balances.
B) The modified accrual accounting used in governmental accounting is essentially equivalent to the cash basis accounting used by businesses.
C) Governmental funds record may not record liabilities or accrue expenditures when payable.
D) Revenues are recorded the same under accrual and modified accrual accounting. The difference in the two methods applies only to expenses/expenditures.