The report in the general fund is consistent with the modified accrual basis of accounting being followed. Expenses are acknowledged in the accounting duration in which a fund obligation is incurred, quantifiable, and anticipated to be paid within twelve months after the end of the fiscal period in which the expenditure is made.
Besides, there are several exceptions in specific circumstances, such as recording unpaid principal and interest on general obligations and long-term debt, only recorded when they become due.
All of the revenues linked with the current fiscal period, including property taxes, interest income, franchise taxes, and permits, are regarded to be accrual-capable and, as a result, have been recorded as revenues for the present fiscal duration in the books.