Acc 100 #3

acc 100 #3

• 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

https://www.youtube.com/watch?v=aPwdgUDXkkE&feature=youtu.be

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There are two methods of accounting basis on which different businesses can settle on in order to manage their finances. These methods are cash accounting basis and accrual accounting basis. Businesses settle on either of the two after having put a lot into considerations.

Cash accounting basis

This basis of accounting is mostly used by small businesses. In cash accounting basis, transactions are recorded if and…..

APA

575 words