ACCT 504 Week 2 DQ 2 Accrual Accounting and Adjusting Entries Devry

Week 2 DQ 2: The Accounting Information System and Accrual Accounting Concepts

Accrual Accounting and Adjusting Entries (Graded)

In this area, we will talk about the difference between cash-basis and accrual-basis accounting, the importance of revenue recognition and matching principles, and the role of adjusting and closing entries in the preparation of the income statement, statement of retained earnings, and balance sheet. How is cash-basis accounting different from accrual-basis accounting?