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

question 20

Multiple Choice

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

• A) when cash is received.
• B) when the exchange takes place.
• C) over the period during which the government obtains an enforceable legal claim.
• D) when related expenditures are incurred.

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Definitions:

Stakeholder Responsibility

The obligation of an organization to act in the best interests of its various stakeholders, including employees, customers, investors, and the community, ensuring ethical and sustainable practices.

Triple Bottom Line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Sustainable Growth

Refers to an achievable growth rate that a company or economy can maintain without running into problems.

Profit Responsibility

The accountability of individuals or departments within an organization to meet specific profit targets or financial performance metrics.