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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?
2. 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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The company needs to maintain monthly ending inventories of clay equal to 20% of the subsequent month's production required. On August 31, 18,000 pounds of clay were on hand.
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