Question: 1) Explain the difference between a cash basis and an accrual basis measure of performance. 2) Why, in most cases, does accrual basis net income

1) Explain the difference between a cash basis and an accrual basis measure of performance.

2) Why, in most cases, does accrual basis net income provide a better measure of performance than net operating cash flow?

3) Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting.

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