Why would the accrual basis of accounting be preferable to the cash basis?
a. it is easier to keep records on the accrual basis than on the cash basis
b. it measures performance by comparing inflows and outflows of cash
c. it ignores the effect of the consumption of assets on the cost of doing business
d. it measures performance by comparing revenues earned with expenses incurred.
Question 2
Which of the following is notan advantage of a computerized system over a manual system?
a. Transactions are recorded and posted at the same time.
b. Accuracy is usually better with a computerized system.
c. Current balances are always available.
d. Internal controls are optional to the computerized system.
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