Under the modified accrual basis of accounting,revenues should be recognized when they are:
A) authorized by the budget ordinance.
B) earned and measurable.
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 both measurable and available to finance expenditures of the current period. This is typically used in governmental accounting.

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