ACCT 4421 : Review CHAP 4
Document Summary
Rationale for the modified accrual basis: in chapter 1 we pointed to two key objectives of financial reporting: Indicating the extent to which the entity achieved interperiod equity(i. e. , whether current- year revenues were sufficient to pay for current-year services) Recognition of revenue: accepting the accrual basis of accounting (even if modified) still leaves unresolved the thorny issue of when revenues should be recognized, the revenue-recognition issues facing governments are less tractable than those of businesses. Governments (except those that engage primarily in business-type activities) derive their revenues mainly from non-exchange transactions- those in which one party gives or receives value without directly receiving or giving equivalent value in exchange: gasb statement no. Meaning of and rationale for available to finance expenditures of the. Current period : budgets are formulated so hat each period"s estimated revenues are sufficient to cover appropriated expenditures. What are the main types of non- exchange revenues and the limitations on how.
