Business Finance
Accounting Adjustments Discussion

Question Description

I’m trying to learn for my Business class and I’m stuck. Can you help?

  • Explain the major advantages and disadvantages inherent in using both the cash and the accrual basis of accounting, and 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.
  • Define the generally acceptable accounting principles that justify making adjusting entries, and speculate on the primary impact to investors and creditors if companies did not make adjusting entries until the end of the calendar or fiscal year.

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

ievordzor (181)
UT Austin

Top quality work from this tutor! I’ll be back!

Just what I needed… fantastic!

Use Studypool every time I am stuck with an assignment I need guidance.