Please A) Define the Cash-Basis Accounting Method and State How

question 82

Essay

Please a) define the cash-basis accounting method and state how net income is determined using this method, b) describe accrual accounting, and c) indicate which of the two methods i.e., cash or accrual) is recommended under GAAP.

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Definitions:

Moderate Association

A statistical term describing a relationship between two variables that is not weak, but not strongly predictive either, often indicated by a correlation coefficient that is neither close to 0 nor to 1.

Moderately Strong Association

A statistical term indicating that there is a noticeable but not overwhelming relationship between two variables.

Little or No Association

A term used in statistics to describe a situation where there is minimal or no statistical relationship between two variables.

Nonlinear

Describing a process, relation, or equation in which there is not a straight line relationship between variables.