“Cash and Accrual – Conceptual”:

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

  • 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