ACOUNTING DISCUSSION

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Watch Accounting WITT’s video titled “Cash and Accrual – Conceptual”:

  • Click here to open the video in a new window.
  • Based on the video, explain two (2) advantages and two (2) disadvantages in using both the cash and the accrual basis of accounting.
  • Then, determine the one (1) that you believe provides the most useful financial information to users.
  • Identify at least two (2) types of businesses that would benefit by preparing financial statements using either the cash or accrual basis of accounting.
  • Justify your response.

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