In accounting for expendable fund entities, revenue is ordinarily not recognized until:
A)it can be objectively measured and it is available to finance expenditures of the current period.
B)a transaction has taken place and the earnings process is complete.
C)it has been received in cash.
D)none of the above.

Question

Quizplus · Accepted Answer

For expendable fund entities, revenue is recognized only when it can be objectively measured and is available to finance expenditures of the current period. This means that revenue is recognized when it is earned, regardless of whether or not it has been received in cash or the earnings process is complete.

In Accounting for Expendable Fund Entities, Revenue Is Ordinarily Not