Question: (1) What is the difference between the cash basis and the accrual basis of accounting? (2) Why is the accrual basis of accounting preferred over

(1) What is the difference between the cash basis and the accrual basis of accounting?

(2) Why is the accrual basis of accounting preferred over the cash basis?

(3) What contra account is used when recording and reporting the effects of depreciation? Why is it used?

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