Under the Modified Accrual Basis of Accounting, Imposed Nonexchange Revenues

question 13

Multiple Choice

Under the modified accrual basis of accounting, imposed nonexchange revenues (such as fines) should be recognized

• A) when assessed.
• B) when the government has an enforceable legal claim.
• C) when collected.
• D) when the government has an enforceable legal claim and when collected within the current period or soon enough thereafter to be used to pay the liabilities of the current period.

---

Definitions:

Accredited Investors

Individuals or entities recognized by financial regulatory bodies as having the financial expertise and resources to participate in more complex and riskier investment opportunities.

Unaccredited Investors

Individuals or entities that do not meet the criteria set by regulatory authorities to be recognized as accredited investors, involving lower financial thresholds.

Safe Harbor Provision

A legal provision that provides protection from liability under certain conditions, often used in securities, copyright, and tax laws.

Private Securities Litigation Reform Act

A 1995 U.S. federal law designed to increase the legal standards required to file securities fraud lawsuits to protect companies from frivolous litigation.