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How the appearance of solvency for a business changes

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Forum consists of two separate questions. You will answer one of the two questions. The chosen question needs to be answered with an initial post of at least 250 words.

(1st question) What are the differences between cash and accrual basis accounting? Provide an example of each type. Briefly explain why a company might need to adjust entries in the general ledger.

(2nd question) Evaluate how the appearance of solvency for a business changes when using cash vs. accrual accounting, noting which stakeholders might be affected and how.

Instructions: Your initial response should be no less than 250 words. In-text citations and references may be in APA format required.

Reference no: EM131761218

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