Under the modified accrual basis of accounting,revenues are recognized in the period
A)when the relevant service is done.
B)when they are collected.
C)when the paying entity is billed.
D)when they become both measurable and available.

Question

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available. This means that the revenue can be reliably measured and that it is available for use by the government in the current period or soon thereafter. This is different from the accrual basis of accounting, which recognizes revenues when they are earned, regardless of when they are collected.

Under the Modified Accrual Basis of Accounting,revenues Are Recognized in the Period