The modified cash basis of accounting is prescribed with full accrual available as an option. Under the modified cash basis expenditures are recorded when the liability for payment exists; revenue is recorded when received. Under full accrual expenditures are recorded when payable and revenues when receivable. Since the accrual of revenues is optional, a district may elect to accrue some, but not all, revenues so long as this election is consistently exercised.
Cal. Code Regs. Tit. 2, § 1111.3