Discussion Board:

Description

Businesses elect to use different accounting approaches. Two of the popular approaches are accrual and cash basis accounting methods.

• If you opened a small business, would you use the cash basis or the accrual basis of accounting?
• What factors would you consider in your decision?

Read through your peers’ posts, and when you respond to them, consider the following:

• Provide suggestions on the additional factors that an organization should consider when selecting the cash or accrual method of accounting.
• Discuss why you agree or disagree with the rationale that your peers gave for their selection on the appropriate method.