Please use the following choices to fill in the blanks below: a. modified accrual b. accrual c. cash 1. Under the __________ method of accounting, expenses are recognized when assets are used up,...

Please use the following choices to fill in the blanks below:

a. modified accrual

b. accrual

c. cash

1. Under the __________ method of accounting, expenses are recognized when assets are used up, while under the __________ method, expenditures are recognized when the asset is purchased.

2. The local government’s water enterprise fund uses the __________ method of accounting because it is run like a business.