As Used in Defining the Modified Accrual Basis of Accounting

question 67

Multiple Choice

As used in defining the modified accrual basis of accounting, the term "available" means

• A) received in cash.
• B) will be received in person within 60 days after year-end.
• C) collection in cash is reasonably assured.
• D) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.

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Definitions:

Equivalent Units Of Production

The number of production units that could have been completed within a given accounting period, given the resources consumed.

First-In, First-Out

An inventory accounting method where goods first purchased or manufactured are the first ones to be sold.

Completion Percentage

In project management and accounting, it refers to the ratio of work completed to the total scope of work, often used for progress billing and revenue recognition.

Equivalent Units

A concept in cost accounting used to convert partially completed goods into an equivalent number of fully completed units for inventory accounting purposes.