Question

Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?

a.accrual
b.modified accrual
c.modified cash
d.budgetary

Answer 1

The accrual basis of accounting recognizes revenues when measurable and available for paying current obligations and expenditures when incurred.

Step-by-step explanation:

The basis of accounting described in the question is the accrual basis of accounting. Under the accrual basis, revenues are recognized when they are earned, not when cash is received. Similarly, expenses are recognized when they are incurred, not when cash is paid.