Sole Proprietorship - Google Chrome oncmg.com/activity/5/1/1 nderstanding the Cash versus Accrual basis y 1.a - Identifying Differences between Cash and Accrual Basis each scenario and fill in the Cash basis/Accrual basis table. 12 D A Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $600 for six months of advertising. Cash Payment Expenses Recorded Total Expenses Recorded 12 3 $ S D 4 W E R ZXC % 5 Cash Basis T Y 025 & F G H 7 hp U ANKARA V B N 144 1 AI K M 16 Accrual Basis ( L P