Ideally, under the accrual basis of accounting, license fees, permits, and other miscellaneous revenue should be recognized
A)when cash is received.
B)when the exchange takes place.
C)over the period during which the government obtains an enforceable legal claim.
D)when related expenditures are incurred.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when it is earned, which typically occurs when the exchange takes place, regardless of when cash is received.

Ideally, Under the Accrual Basis of Accounting, License Fees, Permits