· Accrual and Modified Accrual Basis of AccountingSubmit your responses to the following questions...

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· Accrual and Modified Accrual Basis of Accounting Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For written answers, please make...

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· Accrual and Modified Accrual Basis of Accounting
Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For written answers, please make sure your responses are well written, use APA formatting, and have the proper citation, if needed.
1. How does the modified accrual basis of accounting differ from the accrual basis?
What are the three sections of a comprehensive annual financial report (CAFR)? What information is contained in each section? How do the minimum requirements for general purpose external financial reporting related in scope to the CAFR

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Answered Same Day Dec 23, 2021

David · Accepted Answer

Difference between Accrual Basis & Modified Accrual Basis 
Accrual Basis is the most commonly used method of accounting. Most of the entities use 
this accounting practice. In this method, income is reported when earned and expenses are 
reported when incurred.   It is just opposite to the cash accrual system. Under the accrual basis, 
companies can decide when to recognize revenue and expenses, but there are certain rules and 
principles governing the recognition. In accrual basis, companies are required to make estimation 
against the revenue that are recorded but may not receive. 
Accrual accounting is considered to be a standardized method of accounting; it provides a 
more accurate picture of company’s current operations. The need of this method arises due to the 
complexities faced by the company in terms of depicting true picture of the business. Selling 
items on credit provides revenue over a long period of time and thus reporting such events on 
financial statements in the same reporting period is necessary.

· Accrual and Modified Accrual Basis of Accounting Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For written answers, please make...

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