Disc 1-1: Using Accounting

As a potential business owner, discuss why and how you can use accounting in your business by answering the following questions:

1. What type of business would you like to own?
2. How will you be able to tell if your business is successful?
3. What accounting knowledge do you think you will need to have?
4. What do you think will be your biggest accounting challenges?
5. Why?

2-1 Disc - Cash-vs-Accrual Accounting

Using the same business listed above, consider the impacts of the basis of accounting by answering the following questions:

1. What is the cash basis of accounting?
2. What is the accrual basis of accounting?
3. How will the accounting for your specific business be different if you use the accrual basis (please use specific examples) instead of the cash basis?
4. What will accrual basis statements tell you specifically that cash basis statements will not tell you?