linguistic:voice_change, structural:reformatting
Accounting basis

Governmental funds, which are not concerned about profitability, usually rely on a modified accrual basis. This involves recognizing revenue when it becomes both available and measurable, rather than when it is earned. Expenditures, a term preferred over expenses for modified accrual accounting, are recognized when the related liability is incurred. Expenditures also include purchases of capital assets, and repayments of debt, which are not considered expenses in business accounting.