How would purchase orders and contracts be reported under modified accrual accounting and accrual accounting?
Modified Accrual Accrual

Question

Quizplus · Accepted Answer

Under modified accrual accounting, purchase orders and contracts are recorded as encumbrances to reserve budgetary funds, with no liability recorded until goods/services are received. Under full accrual accounting, no entry is made until the transaction is complete and a liability is incurred.

How Would Purchase Orders and Contracts Be Reported Under Modified