Question: While you were explaining the differences between the two types of accounting methods to a new client, they express concern about misleading investors through accrual

While you were explaining the differences between the two types of accounting methods to a new client, they express concern about misleading investors through accrual accounting because it does not align with cash transactions.

Provide an explanation to the client on the advantages of the accrual method.

Discuss with your classmates the disadvantages of the accrual method and how these can be overcome.

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