Project description:
1). "Accounting Adjustments" Please respond to the following:
Explain the major advantages and disadvantages inherent in using both the cash and the accrual basis of accounting, and determine the one (1) that you believe provides the most useful financial information to users. Identify at least two (2) types of businesses that would benefit by preparing financial statements using either the cash or accrual basis of accounting. Justify your response.
Define the generally acceptable accounting principles that justify making adjusting entries, and speculate on the primary impact to investors and creditors if companies did not make adjusting entries until the end of the calendar or fiscal year.
Discuss closing entries and reversing entries.
Discuss the steps in the accounting process.
2). “Financial Statement Accuracy” Please respond to the following:
Identify the key steps in the closing process that provide the most opportunity to make mistakes in processing account transactions. Make at least two (2) recommendations for improving the accuracy and reliability of the information in the gaps that you have identified. Justify your response.
*From the e-Activity, identify at least three (3) benefits afforded to the users of the financial statements and the company of accelerating the closing process. Provide a rationale to support your response.
Discuss closing entries and reversing entries.
Discuss the steps in the accounting process.