1. What type of business would be more likely to use the cash basis of accounting? (5 pts) A. Walmart B. Joe's Lawn Care C. Caterpillar D. Kellogg's 2. Matching (each choice could be used more than once) (5 pts ea.) A. Accrual basis of accounting C. Cash basis of accounting Matches reporting of expenses to revenues when revenues are earned Reports net income as the difference between cash receipts and cash payments Requires making adjusting entries Reports revenues and expenses when cash is received or paid May be used by companies that have few receivables and payables Does not allow for a clear picture of cash flow May distort reporting of the profitability of a company due to timing of payments 3. Your company does some work for a customer and received payment when the job contract was written on January 24th for work to be performed and completed on February 5th. What month is the income recorded for an accrual-basis company? ( 5pts ) What month is the income recorded for a cash-basis company? (5 pts)