Describe the Main Reasons Why Profits Based on an Accrual

question 71

Essay

Describe the main reasons why profits based on an accrual accounting system will differ from those based on a cash-based system?

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Definitions:

Bequest

A gift of personal property by will (from the verb to bequeath).

Residuary

Relating to the remainder of an estate after debts, specific bequests, and expenses have been accounted for.

Intestacy Laws

Legal provisions that dictate the distribution of a deceased person's estate in the absence of a will.

Per Stirpes

is a legal term used in wills and estate planning that describes how assets are divided among heirs, according to branches of the family.