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Question: Answer the following Questions
1. Discuss the key differences between cash and accrual accounting? Explain why most health entities use accrual accounting.
2. What is the matching principle? Explain and detail what methods of accounting and what types of assets most easily conform to the matching principle.
3. What is the revenue recognition principle?
4. What are Generally Accepted Accounting Principles (GAAP)? Why are they important?
5. What is a "qualified opinion" in an external audit? Is this good for the firm? Why?
Make sure you are properly citing your source(s) and providing your reference(s) for information you obtain from another source. Please review the Discussion Expectations and Grading posting if you have any questions regarding answering the discussion question and/or responding to your peers.
Charter Corporation, which began business in 2013, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2013 and 2014
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