Which of the Following Is True Regarding Modified Accrual Accounting

question 63

Multiple Choice

Which of the following is true regarding modified accrual accounting?

• A) Revenues are recognized when measurable and available to finance expenditures of the current period.
• B) Expenditures are generally recognized as the related goods or services are received.
• C) Both a and b above.
• D) None of the above.

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Definitions:

Revenue Tariff

A type of tariff that is primarily levied by a government with the objective of generating income rather than protecting domestic industries.

Competitive Disadvantage

A condition where a company or country is not able to compete effectively with others due to inferior resources, skills, or capabilities.

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition.

Excise Tax

A specific tax imposed on certain goods, products, or activities, usually to discourage consumption or to raise revenue.