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Explain the diff between cash & accrual accounting. Include

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Explain the diff between cash & accrual accounting. Include a discussion of the revenue recognition & matching principles

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Explain the diff between cash & accrual accounting. Include a discussion of the revenue recognition & matching principles

Cash basis accounting recognizes cash when received, and expenses when ...

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Explain the diff between cash & accrual accounting. Include a discussion of the revenue recognition & matching principles

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Please help ( refer to the attachment) as unable to explain with the balance sheet.

1. How does the income statement articulate with the Balance sheet?

2. Comment on the major changes in expenses between the two financial years.

3. Distinguish between depreciation and amortisation

4. When is hospital service income regconised in the income statement? please
explain.

5. There was a significiant increase in"other operation income" from 2008 to
2009. What was the main contributing factors that explains this increase?

6. An asset is similar to an expense. Do you agreed? please explain with reason.

7. Although the income statement is a record of past achievement, the calculations required for certain expenses involce estimates of the future". what is meant by this statement? Can you think of examples where estimates of the future are used???

8." Depreciation is a process of allocation and not valuation" what it meant?

9. How would you suggest a bunsiness determine the bad and doubful debts' expenses for a given period?

10. The cash flow statement provides an explanation of the change in cash for the reporting entity. what is included in cash?

11. In what ways is the cash flow:
- Similar to the income statment?
- different from the income statement?

12. For the three categories of sources / uses of cash summarised in the cash flow statement, comment on the significant changes between 2009 and 2010.

13. What factors could give rise to the accounting "accrual profit" exceeding the cash flow from operating activites?

14. If you reviewed the cash flow statement for an organisation over several years and what would you expect to observe about the net flow from each of the three different activites?

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