The Johnny Flowers Law Firm uses a client database. Suppose Johnny Flowers paid $2,900 for a computer.

Question:

The Johnny Flowers Law Firm uses a client database. Suppose Johnny Flowers paid $2,900 for a computer.
Requirements
1. Describe how the business should account for the $2,900 expenditure under
a. the cash basis.
b. the accrual basis.
2. State why the accrual basis is more realistic for this situation.