How Would Purchase Orders and Contracts Be Reported Under Modified

question 78

Multiple Choice

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

• A) Expenditure Liability
• B) Expenditure No entry
• C) Encumbrance Liability
• D) Encumbrance No entry

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Definitions:

Leeward

The side sheltered from the wind, often used in reference to the direction opposite to the prevailing wind.

Mountain

A large natural elevation of the earth's surface rising abruptly from the surrounding level; a large steep hill.

Coastal Breezes

Wind currents that are generated by the temperature difference between the land and the ocean, with the land absorbing and releasing heat faster than the water.

Lichens

Symbiotic organisms consisting of a fungus and an alga or cyanobacterium, living together and often found on rocks or trees.