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1 explain the accrual cash and modified cash bases of

1. Explain the accrual, cash, and modified cash bases of accounting.

2. Compare the methods and demonstrate the similarities, differences, advantages, and disadvantages of each method.

3. Which method seems easiest to work with? Keep in mind not only the ease of recording the transactions but the ease with which the accountant can use the resulting financial information.

4. Which method(s) are approved by GAAP?

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