32. governmental funds must recognize revenue when it is measurable and available. what basis of accounting…

32. governmental funds must recognize revenue when it is measurable and available. what basis of accounting uses this revenue recognition timing?\na. the accrual basis of accounting.\nb. the cash basis of accounting.\nc. the modified accrual basis of accounting.\nd. the fund basis of accounting.

32. governmental funds must recognize revenue when it is measurable and available. what basis of accounting uses this revenue recognition timing?\na. the accrual basis of accounting.\nb. the cash basis of accounting.\nc. the modified accrual basis of accounting.\nd. the fund basis of accounting.

Answer

Brief Explanations:

Governmental funds use the modified - accrual basis of accounting where revenue is recognized when it is measurable and available. The accrual basis recognizes revenue when earned regardless of availability. The cash basis recognizes revenue when cash is received. There is no "Fund Basis" as a standard accounting basis for this context.

Answer:

C. The Modified Accrual Basis of accounting.