Question 1: Differentiate the accrual basis of accounting from the cash-basis of accounting.
Question 2: Determine which method is acceptable for most business enterprises and justify your selection.
Question 3: Contrast the impact of cash versus accrual accounting on net income of a first year business with substantial sales on account and no liabilities.
Question 4: Determine which method reflects cash available to the business and justify your findings.
Question 5: Justify why we use the accrual basis of accounting under GAAP if "cash is the real bottom line."