Question

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

Answer 1

Answer:

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.