Modified Accrual Accounting and General Fund Items
Complete the following questions based on the Chapter 4 material:
• Outline revenue recognition criteria under modified accrual accounting. Include specific requirements for property tax revenue.
• Outline expenditure recognition criteria under modified accrual accounting. Include the general case, recognition of debt service expenditures, and recognition of expenditures for item such as compensated absences.
Additionally, distinguish between the (1) GAAP basis and (2) budgetary basis of reporting for the General Fund.
Do not forget to show all necessary steps and explain how you attained the outcome.