GFOA Exam CPFO Topic 2 Question 57 Discussion

''A cash received as a loan is shown as revenue not as a liability, on the balance sheet. To correct for such cases, most cash accounting systems recognize not only cash but also other assets and liabilities arising through prior cash transactions. This adjustment, though, does not alter the fact that outstanding obligations have been incurred but not accounted for, thus overstating the available balance.'' This is an example of possible mishandlings after the selection of ________________.