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 actual liability recorded until goods or 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