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 these.

Question

Quizplus · Accepted Answer

Revenue in accounting for expendable fund entities is recognized when it can be objectively measured and is available to finance expenditures of the current period. This approach ensures that the funds are recognized in a manner that matches the timing of when they are actually available to be used, which is crucial for budgeting and financial planning in entities that rely on expendable funds.

In Accounting for Expendable Fund Entities, Revenue Is Ordinarily Not