Under the modified accrual basis of accounting, license fees, permits, and other miscellaneous revenue are generally recognized for practical purposes
A) when cash is received.
B) when the exchange takes place.
C) over the period during which the government obtains an enforceable legal claim.
D) when related expenditures are incurred.

Question

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, revenues such as license fees, permits, and other miscellaneous revenues are recognized when they are measurable and available, which in practical terms often translates to when cash is received. This approach simplifies accounting for these types of revenues, which may not be tied to specific expenditures or periods of enforceability.

Under the Modified Accrual Basis of Accounting, License Fees, Permits