Accounting 2 / For WIZARD KIM

Chose only ONE questions to answer, 250 word minimum, cite references using APA format. 

(1st question) What are the differences between cash and accrual basis accounting? Provide an example of each type. Briefly explain why a company might need to adjust entries in the general ledger.

(2nd question) Evaluate how the appearance of solvency for a business changes when using cash vs. accrual accounting, noting which stakeholders might be affected and how.