Which of the following is a true statement regarding modified accrual accounting?(Points : 5)

Expenditures for claims and judgments, compensated absences, and special termination benefits should be ecognized whether or not the liabilities are to be paid with available funds.

Expenditures for services used by the General Fund departments should be recognized when those services are received, regardless of whether or not funds are available for payment.

Both of the above statements are true.

Neither of the above statements are true