Briefly explain the difference between accrual-basis accounting and cash-basis accounting.
What will be an ideal response?
In accrual-basis accounting profits are recorded when they are earned, whether or not the profits have been received in cash, and expenses are recorded when they occur, even if the money has not actually been paid out.
In cash-basis accounting, profits are reported when cash is received and expenses are reported when they are paid.
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Ways to build self-confidence include:
a. All of the answers are correct. b. increase your knowledge and skills. c. expect to succeed. d. learn from your mistakes.
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