|Posted: 07 May 2010 at 09:49 | IP Logged
[Thank you! So there is never Accounts Payable using modified accural method? I need to go back to check the book later...
I believe it is "d" since general fund like any governmental fund uses modified accrual method, not the full accrual method used by proprietary funds or businesses.
According to this method you don't accrue the interest, but expense it when money transfer out of the fund is made. Usually interest and debt is transferred to Debt fund which takes care of all interest and debt payments
It's amazing what you can accomplish if you do not care who gets the credits.