A major element of this week's lesson is making sure that you understand how the so-called accrual adjustments "correct" a cash-basis income statement. For this discussion you need to select ONE (1) real-world example of a business circumstance that would reasonably be the basis for an accrual adjustment in an income statement.

Be sure to (a) briefly describe that circumstance, (b) describe what the appropriate adjustment to the cash basis income statement such that it would then represent an accrual basis revenue or expense, and (c) walk through the logic of HOW the adjustment usefully corrects what would have been reflected on a cash basis income statement.