Explain the Difference Between Cash-Basis and Accrual Accounting

question 42

Essay

Explain the difference between cash-basis and accrual accounting. Are adjusting entries necessary in both methods? Explain.

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Definitions:

Grounding

In a psychological context, it refers to techniques used to bring someone fully into the present and calm the mind, often used in managing anxiety or stress.

Control Theory

Holds that the rewards of deviance and crime are ample. Therefore, nearly everyone would engage in deviance and crime if they could get away with it. From this point of view, the degree to which people are prevented from violating norms and laws accounts for variations in the level of deviance and crime.

Deviant Impulses

refer to thoughts or behaviors that significantly deviate from the societal norms or values.

Commit Crimes

The act of engaging in activities that are declared illegal by law, which can involve violations ranging from minor infractions to serious felonies.