Accrual Accounting
Response to the following problem:
AICPA Adapted Generally accepted accounting principles require the use of accruals and deferrals in the determination of income.
Required
1. Explain how accrual accounting affects the determination of a company's income. Include in your discussion what constitutes an accrual and a deferral, and give appropriate examples of each.
2. Contrast accrual accounting with cash accounting.