Under the modified accrual basis used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected:

• A. During the current fiscal period or soon enough after year-end to pay current period obligations
• B. Immediately
• C. At year-end
• D. In the next fiscal year

Answer: (A)

In the modified accrual basis used by the General Fund, revenues are recognized only when they are measurable and available to finance the current period’s expenditures. Availability means the revenue or other financing source can be used to pay current obligations; that generally means it is collected during the current fiscal period or soon enough after year-end to cover the current period’s needs. This window is what ties revenue recognition to the ability to fund the current year, rather than waiting for some future period. Therefore, recognizing revenue only when it will be collected in time to pay current obligations best reflects the available resources concept. Revenues expected to be collected in the next fiscal year would not be considered available for the current period, and recognizing revenue immediately or only at year-end would not capture the intended timing.