Question: use this phrase a lot: If you can't explain it to your mom, then you don't understand it. Explain the difference between accrual and cash-basis

use this phrase a lot: "If you can't explain it to your mom, then you don't understand it". Explain the difference between accrual and cash-basis accounting as if you were talking to your mom (or another person that you have a deep, personal relationship with). In other words, avoid textbook jargon and complicated definitions

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Melodic Musical Sales, Inc. is located at 5500 Fourth Avenue, City, and ST 98765. The corporation uses the calendar year and accrual basis for both book and tax purposes. It is engaged in the sale of...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Q1-Explain how the EBIT Chart works (inputs determining the outputs-the two lines on the chart Case Leahy Bread Company (LBC) in Cohen Finance Workbook, page 111( a 'caselette') SEE THE IS/BS MODEL &...

I need help with following questions from the homework. I have attached the chapters so please see the attached files to answer the following questions specifically. Ch 4 (p 176 of text or p 34 of...

I have included all of the instruction in the attached document. (1) Transactions made by Huddleston Co. for the month of March are shown below. 1. The company performed $23,920 of services for...

Item 2 of 6 (20 points) a) As discussed in class, what is the approximate amount of the current U.S. national debt? Has this amount been increasing or decreasing recently? Why does the United States...

Review case 4.1 Enron Corporation and Andersen, LLP . Complete the following Required questions related to this case, 1-5, in approximately 75 to 90 words. QUESTIONS TO BE ANSWERED: Review case 4.1...

Administrative Details The overall project is worth 12% of your final grade.Assignments are due by 10am, Monday, April 12.A 25% penalty will apply for a late assignment. Assignments will not be...

I need the item removed. The site doesn't allow me to remove or change post. m pully suell as Starbucks? 30% and highe In general, what are intangible assets? What is goodwill? What specific...

Item 2 of 6 (20 points) a) As discussed in class, what is the approximate amount of the current U.S, national debt? Has this amount been increasing or decreasing recently? Why does the United States...

Read attachment, complete figures 2, 3, and 5. Discuss how to allocate overhead between various jobs. Also discuss how to select an activity base and whether it is beat to use one plant-wide cost...

Draw and explain the triggering circuits for series connectedSCRs

POGI Company sells its products at P20 per unit. Variable costs is P14 per unit, composing of manufacturing cost of P11.00 and selling cost of P3.00. Fixed cost is incurred uniformly throughout the...

Salvage value is computed by subtracting the accumulated depreciation from the cost of a long - term asset