Under the modified accrual basis of accounting used by the general fund, revenues should be recognized in the period in which:

A. Cash is collected

B. Amounts are earned

C. Amounts are received

D. Amounts are available and measurable

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Casey DurganLv2

28 Sep 2019

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Which of the following statements about accrual-basis accounting is true?

a. Accrual-basis accounting recognizes revenues when they are received in cash.

b. Accrual-basis accounting is optional under generally accepted accounting principles.

c. Accrual-basis accounting recognizes expenses when they are incurred.

d. Accrual-basis accounting follows the fiscal year assumption.

Which of the following is not a characteristic of the accrual basis of accounting?

a. Revenues and expenses are reported in the period in which cash is received or paid

b. Revenues are reported in the income statement in the period in which they are earned

c. Supports the matching concept

d. All are correct.

Under accrual-basis accounting

	A.	events that change a company's financial statements arerecognized in the period they occur rather than in the period inwhich cash is paid or received.
	B.	net income is calculated by matching cash outflows against cashinflows.
	C.	the ledger accounts must be adjusted to reflect a cash basis ofaccounting before financial statements are prepared under generallyaccepted accounting principles.
	D.	cash must be received before revenue is recognized.

Accounting 580,000