Under Modified Accrual Accounting,when Are Revenues Considered to Be "Available

question 44

Multiple Choice

Under modified accrual accounting,when are revenues considered to be "available?"

• A)when cash has been collected
• B)when cash is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period
• C)when cash is on hand or reasonably expected to be collected at any time in the future so they can pay liabilities incurred in the current period
• D)when property tax bills have been mailed

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Definitions:

NPV

A valuation method that calculates the net value of an investment by discounting future cash flows back to their present value.

Yen

The official currency of Japan, symbolized as ¥, and one of the most traded currencies in the foreign exchange market.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, vital for assessing the financial health of an entity.

NAFTA

The North American Free Trade Agreement, which was a treaty between the United States, Canada, and Mexico aimed at eliminating trade barriers between the countries.