Under modified accrual accounting,when are revenues considered to be "available?"
A)when cash has been collected
B)when cash is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period
C)when cash is on hand or reasonably expected to be collected at any time in the future so they can pay liabilities incurred in the current period
D)when property tax bills have been mailed

Question

Quizplus · Accepted Answer

Under modified accrual accounting, revenues are considered available when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. This means that the revenue must be expected to be collected and available for use before the end of the current fiscal year or within a specific time frame after the end of the fiscal year, such as 60 or 90 days. The focus is on the timing of when the revenue will be available to finance current obligations, not just when cash is collected.

Under Modified Accrual Accounting,when Are Revenues Considered to Be "Available