Under Modified Accrual Accounting, Revenues Are Recognized When Measurable And

question 88

Multiple Choice

Under modified accrual accounting, revenues are recognized when measurable and:

• A) Available.
• B) Collected.
• C) Earned.
• D) Expenditures have been made.

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Definitions:

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all other costs necessary to bring the asset to a condition ready for its intended use.

Consolidated Financial Statements

Combined reporting of the financial statements of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The value for which an asset might be traded or a liability could be transferred in a regulated sale between entities in the market, as determined on the specified date of measurement.

Book Value

The net value of an asset or liability recorded on the balance sheet, calculated as its original cost minus any depreciation, amortization, or impairments.