ACC 100 Chapter Notes - Chapter 4: Financial Statement, Accrual

Explain the difference between the cash-basis of accounting andthe accrual-basis of accounting. Are adjusting entries necessary inboth methods? Explain.

Answer the following questions:

1. Describe the five types of government entities.

2. Describe the attributes of government entities.

3. Describe fund accounting

4. Describe modified accrual accounting.

5. Describe full accrual accounting

6. Describe the financial resources measurement focus.

7. Describe the economic resources measurement focus.

Discuss the difference between cash and accrual basisaccounting. Use terminology in the chapter regarding GAAP todescribe which more accurately reflects a business's position andwhy. Research MCI WorldCom and discuss possible pitfalls of accrualaccounting.

Discuss two of the four types of adjusting entries and why theyare necessary.