Discussion Post
• Explain the difference between the accrual basis of accounting and the cash basis of accounting?
• What are the major reasons for accrual accounting? How are revenues and expenses defined under accrual accounting?
• What is an audit in the context of financial accounting?
• Explain the double-entry accounting system and the duality concept. How are they related?
• The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more frequently for accounting purposes than other methods, such as the HC-GPL, CV, and CV-GPL methods. Why is this so?
• Define and describe the purpose of fund accounting (now called net assets).
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.