Question

Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected

A. Within 60 days after year-end.

B. Within 90 days after year-end.

C. During the current fiscal period.

D. During the current fiscal period or a reasonable time after year-end defined by each individual government.

Answer 1

Answer:

D. During the current fiscal period or a reasonable time after year-end defined by each individual government.

Explanation:

Modified accrual basis makes use of the accrual and cash basis of accounting.

It is used to monitor flow of funds in government finance books.

The resource recognition is done as defined by the government within the fiscal year or after.

Estimation of cash flow is done as soon as funds is available to fund government expenditure.