Watch Accounting WITT’s video titled “Cash and Accrual – Conceptual”:
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.
Identify and discuss the key steps in the closing process that provide the most opportunity to make mistakes in processing account transactions. Why did you select these steps and what makes them confusing?
Make at least two (2) recommendations for improving the accuracy and reliability of the information in the gaps that you have identified.
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