1.If you were an investor in a rent-to-own business that takes more than a year to collect revenues while the customers take immediate possession of the goods: Would you prefer to have the income statement prepared by cash basis or by accrual basis and why?

2.If you were an investor of a construction company with projects that take more than a year to complete, what is your income statement preparation preference and why? If you choose the accrual basis, what can shareholders do to ensure the appropriate use of accruals?