Under the modified accrual basis of accounting, fines, license fees, permits, and other miscellaneous revenue are generally recognized

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Under modified accrual basis of accounting, revenue is recognized when an enforceable legal claim exists and the revenue is available, which means that the revenue is both measurable and collectible within the current period or soon enough thereafter to be used to pay current liabilities. This is true for fines, license fees, permits, and other miscellaneous revenue as well.

Under the Modified Accrual Basis of Accounting, Fines, License Fees