Modified Accrual Accounting

Question 1

When are governmental fund revenues recorded?

Answer 1

When measurable and available

Usually, the collection period does not exceed 60 days after fiscal year end

Question 2

Derived (non-exchange) tax revenues

Answer 2

Taxes imposed on or derived from exchange transactions

Question 3

Imposed non-exchanged revenues

Answer 3

taxes imposed on non-exchange transactions (fines) or wealth (property taxes)

Question 4

Gov’t-mandated non-exchange transactions

Answer 4

instances in which a higher level of gov’t provides funds and mandates certain activities by another level of gov’t