Under Which Basis of Accounting for a Government Should Revenues

question 66

Multiple Choice

Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?

• A) Accrual basis: No; Modified accrual basis: No
• B) Accrual basis: Yes; Modified accrual basis: No
• C) Accrual basis: Yes; Modified accrual basis: Yes
• D) Accrual basis: No; Modified accrual basis: Yes

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Definitions:

Put Option

A financial agreement that permits the holder to choose whether to sell a specific quantity of a principal asset at a fixed price during an established period, without any mandatory commitment.

Keebler, Inc.

An American cookie and former cracker manufacturer, known for its elfin characters and cookie varieties.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profits or losses.

Convertible Bond

A financial instrument that can be converted by the bondholder into a predetermined quantity of the issuer's company shares at certain intervals throughout the bond's life, generally at the bondholder's discretion.