Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

Question

Business

Boots

26 June, 02:38

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

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Answers (1)

Know the Answer?

Joy Holloway · Answer 1

The correct answer is: Modified Accrual Accounting.

Explanation:

The Modified Accrual Accounting is a governmental - not for public companies - method that combines the accrual basis and cash basis accounting methods. Under this approach, revenues and expenses are recorded as soon as they are available and measurable.