Question: Answer the following questions: How does the modified accrual basis of accounting differ from the full accrual method of accounting? Why would governmental funds

Answer the following questions: How does the modified accrual basis of accounting differ from the full accrual method of accounting? Why would governmental funds elect to use the modified accrual basis instead of the full accrual basis? What are funds? What purpose do they serve? Why do the governmental funds use the term expenditure versus expense?

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