1. What is cash accounting as opposed to accrual accounting?

2. List and explain 4 advantages of using the cash accounting basis?

3. The Ministry of Health started health services to a private health care

giver on November 1, 2015 at a cost of $120,000.00. The Ministry

completed the provision of the service on November 30, 2015. The

health care giver made part payment of $80,000.00 using cash on January 2,

2016, then pays the balance exactly 1 monthly later