For this week’s homework, you need to respond to the questions outlined below.
Submit questions in a Word Document. The answers to each question should 100% be in your own words without citing sources. However, a reference page in APA format is required, and should include the sources from where the knowledge was gained to write your answers.
Respond to the following six questions. Each accurate and complete response is worth 10 points.
Please note the tool TurnitIn will be used to check submissions for “Similarity.” With the inclusion of the questions, your score should be no more than 25%.
- 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).