M2A1: Cash Method Versus Accrual Method Discussion

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Assignment 1: Cash Method Versus Accrual MethodBusinesses face a choice between two important methods of calculating taxable income for federal income taxes: the cash method and the accrual method.Based on your readings for the module, respond to the following:1. What factors determine a company’s choice between the cash method and the accrual method in accounting for income taxes?2. Give an example of a particular transaction and describe how the two methods would account for that transaction differently.Write your initial response in two to three paragraphs.By the due date assigned, submit your response to the appropriate Discussion Area. Use the same Discussion Area to comment on your classmates’ submissions and continue the discussion until through the end of the module. Comment on how your classmates would address differing views.Discussion Grading TableMaximum PointsQuality of initial posting, including fulfillment of assignment 16Quality of responses to classmates 12Frequency of responses to classmates 4Reference to supporting readings and other materials 4Language and grammar 4Total: 40Purchase the answer to view it
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