You are the Senior Accountant of the Ministry of Help Us and you have just participated in a workshop organized by the Controller and Accountant Generals Department for public sector employees within the Accra Metropolitan Assembly area. The discussions at the workshop mainly centered on the use of accrual accounting principles in the public sector of Ghana. The workshop facilitators emphasized that the public sector accounting processes will fully implement the International Public Sector Accounting Standards and therefore will be migrating from the current modified accrual basis of accounting to a full accrual basis of accounting to improve financial reporting and transparency in government accounting processes. You attended the workshop on behalf of your division and your boss has asked you to brief your colleagues on the workshops deliberations.

Required

a) What is meant by

i. Cash basis of accounting

ii. Modified accrual basis of accounting

iii. Accrual basis of accounting

b) Explain the differences between cash basis of accounting and accrual basis of accounting in terms of: i) Recognition of revenues; ii) Recognition of expenditures; iii) Consumption of fixed assets .