Under the modified accrual basis, revenues are considered available to finance current period expenditures if they are legally available and

Question

Quizplus · Accepted Answer

Under the modified accrual basis, revenues are considered available to finance current period expenditures if they are legally available and collected in the current period or soon enough thereafter to be used to pay liabilities of the current period. This means that even if the revenues are not yet collected during the current period, as long as they are expected to be collected soon enough to cover current period liabilities, they are considered available. Earned and objective measureable are not factors considered in determining availability of revenues under the modified accrual basis.

Under the Modified Accrual Basis, Revenues Are Considered Available to Finance