Accrual Basis:
The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. Enterprise Funds and Internal Service Funds use the accrual basis. Other Pierce County funds use a modified accrual basis under which expenditures, other than accrued interest on general long-term debt, are recorded when incurred. Revenues are recorded in the accounting period when measurable and available. Revenues such as interest earnings on investments, rents, interfund payments for services, and payments from other governmental units are measurable and are recorded when earned. However, revenues derived from taxes, license and permit fees, and fines and forfeits are not always measurable and available, and are thus recognized only when the cash is received.