1. What is the difference between cash basis and accrual basis accounting?
2. How does the matching principle impact financial statements?
3. Explain the concept of depreciation and its importance in accounting.
4. What are the key components of a balance sheet?
5. How does the double-entry accounting system work?
6. What is the significance of the trial balance in the accounting process?
7. Describe the purpose and use of financial ratios in analyzing a company's performance.
8. What is the role of GAAP (Generally Accepted Accounting Principles) in financial reporting?
9. How does inventory valuation impact a company's financial statements?
10. Explain the concept of goodwill and how it is accounted for in business transactions.

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Difference between cash basis and accrual basis accounting Cash Basis Accounting Revenue and expenses are recognized when cash is received or paid It focuses on actual cash inflows and outflows Accrua... View the full answer