Accurate analysis of income statement performance

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Reference no: EM131810944

1. You are saving money for a down payment on a house. Suppose you want to have total savings of $20000 in 10 years time and you have currently $5000. What annual interest rate do you need to earn on your initial investment, assuming you contribute no additional savings?

2. "Accrual accounting more accurately matches the timing of revenues with expenses thus providing a more accurate analysis of income statement performance at a point in time. " Think about why short-term accruals arise.

Reference no: EM131810944

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