In governmental accounting, what is a common practice regarding liabilities for expenditures?

In governmental accounting, the practice regarding liabilities for expenditures generally follows the principle of recognizing them when they become due. This approach ensures that expenditures are recorded in the period they are payable, which aligns with the cash basis of accounting that many governmental entities adopt. By recognizing liabilities once they are due, the financial statements reflect a more accurate position of the entity’s current obligations, allowing for better budgeting and financial management.

This practice emphasizes the importance of matching expenses with the period in which they are expected to be settled, ensuring that financial reporting provides a clear and realistic view of the government's financial status. As a result, liabilities are recorded at the time that payment is expected, rather than when they are incurred or when commitments are made.

In contrast, other options may imply recognizing expenses or liabilities in ways that do not accurately reflect actual obligations at a given time, potentially leading to misrepresentation of financial health. Hence, the selected answer aligns with the standards and principles governing governmental accounting practices.