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1. Why do companies use accrual accounting? Why not use cash basis accounting? 3. What is the purpose of the retained earnings computation? Why is

1. Why do companies use accrual accounting? Why not use cash basis accounting?

3. What is the purpose of the retained earnings computation? Why is it important for users to analyze changes in this account? What will be the beginning balance in retained earnings in the following year? Can retained earnings be a negative amount? Why?

4. What is the purpose of the balance sheet? How are assets listed on the balance sheet?
3. What is the purpose of the retained earnings computation? Why is it important for users to analyze changes in this account? What will be the beginning balance in retained earnings in the following year? Can retained earnings be a negative amount? Why?

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