Financial Reporting Discussion: ACCRUAL VS CASH ACCOUNTING
Watch the following youtube videos and discuss this topic:
1. "3 - Accrual vs. Cash-Basis Accounting"
2. "Rev Recognition -Point of Sale"
3. "Sales Returns & Allowances (Revenue Recognition, With A High Rate Of Returned Merchandise To Sales)".
Discuss the timing difference on revenue and expense recognition between cash-based and accrual-based accounting by citing a specific transaction as an example. How does this issue impact financial reporting (FASB) and tax reporting (IRS)?
Discuss the role and responsibilities of a CPA.
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.