Which of the following is true regarding modified accrual accounting?
A. Modified accrual accounting is required for all fund financial statements.
B. Revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred, except for principal and interest on long-term debt.
C. Modified accrual accounting requires that all expenditures be recognized on the cash basis.
D. All of the choices.
Answer: B
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