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Throughout this course we have been using the accrual basis of accounting to complete our work. However, there are two other methods of accounting, the cash and the modified cash bases.
For this assignment please answer each of the following questions in a short paragraph:
Explain the accrual, cash, and modified cash bases of accounting.
Compare the methods and demonstrate the similarities, differences, advantages, and disadvantages of each method.
Which method seems easiest to work with? Keep in mind not only the ease of recording the transactions but the ease with which the accountant can use the resulting financial information.
Which method(s) are approved by GAAP?
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1. The annual YTM on a bond-equivalent basis is approximately:
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