Under the Modified Accrual Basis of Accounting,revenues Should Be Recognized

question 115

Multiple Choice

Under the modified accrual basis of accounting,revenues should be recognized when they are:

• A) authorized by the budget ordinance.
• B) realizable and earned.
• C) measurable and available to finance expenditures of the current period.
• D) realized through collection.

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Definitions:

Journal Entries

Journal entries are the foundational recordings of all financial transactions in the double-entry bookkeeping system, indicating debits and credits to accounts.

Normal Balance

The side (debit or credit) of an accounting ledger where increases are recorded, reflecting the natural balance of an account.

Financial Statement

A formal record of a company's financial activities, including the income statement, balance sheet, and cash flow statement.

Permanent/Temporary

Describing the duration of accounts or conditions; permanent refers to longstanding or indefinite, while temporary implies a limited or specific time frame.