The accrual basis of accounting is a system that attempts to measure changes in the resources and obligations of the entity, as those changes affect the accounting equation, regardless of the timing of actual cash flows.
Required:
First, describe the timing of revenue and expense recognition under the accrual basis versus the cash basis of accounting. Then, give two examples of 1) a revenue-related transaction and 2) an expense-related transaction that would be reported at significantly different points in time using the accrual basis versus the cash basis.

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The Answer of The accrual basis of accounting is a system that attempts to measure changes in the resources and obligations of the entity, as those changes affect the accounting equation, regardless of the timing of actual cash flows.
Required:
First, describe the timing of revenue and expense recognition under the accrual basis versus the cash basis of accounting. Then, give two examples of 1) a revenue-related transaction and 2) an expense-related transaction that would be reported at significantly different points in time using the accrual basis versus the cash basis.

The Accrual Basis of Accounting Is a System That Attempts