Problem:
How are the financial statements related (from one to another)? Why do these relationships exist? What is the impact of a miscalculation in the income statement on other financial statements? Explain, give examples and be specific.
The different bases of accounting are Cash, Accrual and Tax bases. When would you use the Cash basis? Accrual basis? Tax basis? Which one is better? Why? Explain, give examples and be specific.