Under the accrual basis of accounting, imposed nonexchange revenues (such as fines) should be recognized
A) when assessed.
B) when the government has an enforceable legal claim.
C) when collected.
D) when the government has an enforceable legal claim and when collected within the current period or soon enough thereafter to be used to pay the liabilities of the current period

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, imposed nonexchange revenues like fines are recognized when the government has an enforceable legal claim. This is because it is at this point that the revenue is considered measurable and available, meeting the criteria for recognition under accrual accounting principles.

Under the Accrual Basis of Accounting, Imposed Nonexchange Revenues (Such