Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems. Group of answer choices Cash-based systems must be

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems. Group of answer choices Cash-based systems must be used by large businesses, whereas accrual-based systems must only be used by the smallest businesses. Cash-based systems are generally used with periodic inventory counting systems, whereas accrual-based systems are used primarily with perpetual inventory counting systems. Cash-based systems recognize revenue as it is generated, whereas accrual-based systems record revenue only when it occurs. Cash-based systems are mostly used by publicly held corporations, whereas accrual-based systems are mostly used by privately held corporations

Step by Step Solution

3.46 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below The major diff... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research Methods For Business Students

Authors: Mark Saunders, Philip Lewis, Adrian Thornhill

8th Edition

1292208783, 978-1292208787

More Books

Students also viewed these Accounting questions

Question

Differentiate f(x) = log 10 (2 + sin x).

Answered: 1 week ago