(Conceptual section review) Answer each of the following questions. 1. Why is the accrual basis of accounting preferable to the cash basis of accounting? 2. What is generally required for recognition of revenues under the modified accrual basis of accounting? How is that different from the accrual basis of accounting? 3. What is generally required for recognition of expenditures under the modi- fied accrual basis of accounting? How is that different from the recognition of expenses under the accrual basis of accounting? 4. Based on the material in this chapter, discuss the advantages and disad- vantages of using the current financial resources measurement focus and modified accrual basis of accounting for reporting on revenues and expen- ditures in governmental-type funds.