Under the Modified Accrual Basis of Accounting, Derived Nonexchange Revenues

question 56

Multiple Choice

Under the modified accrual basis of accounting, derived nonexchange revenues are recognized when

• A) they are anticipated to be paid.
• B) they are measurable and available to finance the expenditures of the current period.
• C) the underlying transaction occurs.
• D) the underlying transaction occurs and they are measurable and available to finance the expenditures of the current period.

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Definitions:

Chance Variation

Chance Variation refers to the unpredictability in data or outcomes that arises from random processes inherent in statistical experiments.

Randomly Selected

The process of choosing individuals or items in such a way that each member of a population has an equal chance of being included in the sample.

Normal Fluctuations

Variations in data or statistical measurements that are considered normal or typical within a specific context.

Assignable Variation

Variability in a process attributable to identifiable reasons, rather than being due to chance.