Final answer:
In modified accrual accounting, revenues are recognized when they are quantifiable and expected to be collected soon enough to be used for the current period's liabilities.
Step-by-step explanation:
Under modified accrual accounting, revenues should be recognized when they are both measurable and available. This means that the revenue can be quantified or measured with a reasonable degree of accuracy, and it is available, meaning it will be collected soon enough after the end of the accounting period to be used to pay liabilities of the current period. This approach is typically used in governmental accounting, where revenue recognition is tied not only to when the revenue is earned or the transaction occurs but also to when the funds are available for use.his means that revenues are recognized when the goods or services have been provided, regardless of when the payment is received