Difference between cash & accrual accounting

LOL What is the difference between cash basis accounting and accrual basis accounting a) Which method records transactions only when cash is received? b) Which method records transaction when it occurs, regardless of when the cash is paid? L02. What concepts and principles apply to accrual basis accounting a) Match the concept (by number) to the correct terminology. 1. Time period concept 2. Revenue recognition principle 3. Matching Principle 4. Fiscal year __An accounting time period that may not coincide with the calendar year. Requires companies to record revenue when the entity satisfies each performance obligation. Assumes that a business's activities can be sliced into small time segments and that financial statements can be prepared for specific periods of time. Guides accounting for expenses, ensures that all expenses recorded when they are incurred during a period. Records expenses with the associated revenue in the same period. LO3. What are adjusting entries a) Give an example of a deferred expense. b) If a piece of equipment costs $10,000 and has a useful life of 5 years, what is the depreciation expense for the first year using the straight-line method? Assume no residual value. c) Using the information in the question above, what is the book value at the end of year 1? d) What is the journal entry for receiving cash from customers of $1,000 in advance for concert tickets before the concert has taken place? Date Accounts and Explanation Debit Credis c) Give an example of an accrued expense.
e) Give an example of an accrued expense. L04. What is the purpose of the adjusted trial balance, and how do we prepare it a) How is the unadjusted trial balance and the adjusted trial balance different? LOS. What is the impact of adjusting entries on the financial statements a) What type of missing adjusting entry would cause the net income to be overstated and the assets to be overstated? b) What type of missing adjusting entry would cause the net income to be understated and the assets to be understated?