Discussion
Watch the video Cash and Accural- Conceptual (Accounting WITT: 4minutes 44 seconds long) on YouTube
• Based on the video, explain two advantages and two disadvantages in using both the cash and the accrual basis of accounting.
• Then, determine the one that you believe provides the most useful financial information to users.
• Identify at least two types of businesses that would benefit by preparing financial statements using either the cash or accrual basis of accounting.
• Justify your response.