1. What is the difference between cash accounting and accrual accounting? 

2. Explain the concept of depreciation and how it is calculated. 

3. What is the purpose of the trial balance in accounting?

 4. Describe the difference between a current asset and a fixed asset. 

5. What are the three financial statements commonly prepared by businesses? 

6. What is the purpose of the double-entry accounting system? 

7. Explain the concept of accounts payable and accounts receivable. 

8. How do you calculate the net income of a business? 

9. What is the difference between a liability and an equity in accounting? 

10. Explain the concept of inventory valuation and the various methods used for it.

Answer rating: 100% (QA)

Difference between cash accounting and accrual accounting Cash accounting records revenue and expenses when cash is received or paid out respectively Accrual accounting on the other hand recognizes re... View the full answer