Explain the Differences Between the Cash Basis and Accrual Basis

question 19

Essay

Explain the differences between the cash basis and accrual basis of accounting and how the adjusting process fits in.

---

Definitions:

Prompt

A message or symbol on a computer screen that indicates the system is ready to receive input from the user.

Temporary Holding Area

A space in memory used to temporarily store data while it is being moved or processed.

Buffer

A temporary storage area in memory used to hold data while it is being transferred from one location to another.

Register

A register in computing is a small, fast storage location within a CPU designed to quickly access and store the data that is immediately needed for processing.