Question: 2 . Explain the differences between accrual accounting and cash basis accounting. In what situations would a company choose one method over the other? Discuss

2. Explain the differences between accrual accounting and cash basis accounting. In what situations would a company choose one method over the other? Discuss how each method affects the timing of revenue and expense recognition and the overall financial statements. Use examples to demonstrate how a transaction might be recorded differently under each method.

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