The revenue recognition concept states that revenue should be recorded in the same period as the cash is received.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which statement most accurately describes the use of cash forecasts in government?
a. cash forecasts are not needed because legislatively-approved budgets are sufficient to manage the use of governmental resources
b. cash forecasts are needed to plan for borrowing and investing because the timing of cash inflows does not necessarily match the timing of cash outflows
c. cash forecasts are not needed because they do not require the approval of legislative bodies
d. cash forecasts are needed because they provide the details necessary to support certain approaches to budgeting like performance budgeting
