Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Question

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Answer 1

Question

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

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Answer 2

Question

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

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Answer 4

Question

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

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Answer 5

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

Answer 6

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.

Answer 7

Chapter 5, Problem 1Q

To determine

Explain the meaning of the term “available” as used in governmental fund revenue recognition.

Answer 8

Expert Solution & Answer

Explanation of Solution

The term “available” in governmental fund revenue reorganization refers to both of the following:

The revenues earned by the end of the year or legally available to finance the expenditure of the current period, which is not restricted for the use in the upcoming year next to the current year.
The revenues collected within the current year or soon after the current year not more than 60 days of the year end, which can be available to settle the liabilities incurred for the current year.

Thus, if a revenue item is able to fulfill the above two criteria, it will be recognized as a revenue available; otherwise, it will be classified as deferred revenue till its availability.