Revenues for Governmental Funds Should Be Recognized When Measurable and Available

question 86

True/False

Revenues for governmental funds should be recognized when measurable and available for expenditure in the current period.

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Definitions:

Withdrawals

Money or assets taken from a business by its owner(s) for personal use, typically reducing the total equity.

Cash

Liquid currency and assets readily convertible to currency, used by businesses to conduct transactions.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' claim on the business assets.

Withdrawals

Funds taken out from a business by its owner(s) for personal use, which reduce the capital accounts in the company’s equity section.