1) Describe the difference between accrual and cash basis accounting.
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- what is the adjusting process of accrual and cash basis accounting ? what is depreciation ? what is depreciation expense?What does the credit balance in the Accumulated Depreciation account represent?What is needed to solve a Return on Assets? Balance sheet only or Balance Sheet with Income Statement?
- What is the purpose of adjusting entries as they relate to the difference between cash accrual accounting?What is the difference between Accumulated Depreciation and Depreciation expense? What statements do both appear on? What account are they on? Do they have a DR or CR balance?Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees earnedD. Accumulated depreciation
- (Provide supporting examples to justify your answers (Where required).1. How many types of Transcation explain each with suitable example?2. Define Capital Account and Drawing Account.3. What is meant by Ledger?4. Define Rectifying Entreies with example.5. Define Adjustment Entries with example.What is accrual accounting and how does it work?Question: Which accounting principle states that revenue should be recognized when it is earned and expenses when they are incurred? a. Matching principle b. Revenue recognition principle c. Conservatism principle d. Time period principle