Under the modified accrual basis of accounting,revenues should be recognized when they are:
A) authorized by the budget ordinance.
B) realizable and earned.
C) measurable and available to finance expenditures of the current period.
D) realized through collection.

Question

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, revenues are recognized when they are measurable and available to finance expenditures of the current period. This means the revenues must be collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Under the Modified Accrual Basis of Accounting,revenues Should Be Recognized