Modified accrual accounting records encumbrances when goods are ordered and a liability when goods are received and the government is obligated to pay vendors and accrual accounting does not record encumbrances and records a liability when goods are received.

Question

Quizplus · Accepted Answer

Modified accrual accounting records encumbrances while accrual accounting does not. Both methods record a liability when goods are received.

Modified Accrual Accounting Records Encumbrances When Goods Are Ordered and a Liability