Question

From the perspective of a bureaucrat, which government accounting method is more feasible for each revenue source? Cash Basis, Modified Accrual or Full Accrual. Explain your response. The key to your response should be stability or volatility of the revenue source over time. Further, you should consider whether the revenue source can be broken down into components parts. For example, user fees collected froma street meter may differ in stability from user fees collected at a toll station. In addition, you should realize that the amount and percentage of revenues collected from each source can vary from year to year depending on any number ofsocial, political and economic factors.In anyevent, be specific and justify your response.

A. State Income Taxes:

B. Public Utility Fees:

C. Donations:

D. Motor Fuel Taxes:

E. Licenses and Fees:

F. Sales Taxes:

G. Gaming Fees (Casinos):

H. Block Grants:

I. PropertyTaxes:

Answer 1

Answer

Modified Accrual basis government accounting method is more feasible for each revenue source.

Modified accrual accounting is an accounting method commonly used by government agencies that combines accrual-basis accounting with cash-basis accounting. Modified accrual accounting recognizes revenues when they become available and measurable and, with a few exceptions, recognizes expenditures when liabilities are incurred. This system divides available funds into separate entities within the organization to ensure that the money is being spent where it was intended.

Modified accrual accounting combines accrual basis accounting with cash basis accounting. This method of accounting recognizes revenues when they become available and measurable.