Lesson: Special purpose frameworks: accrual vs cash basis accounting - Practice Questions

In this lesson, Nick Palazzolo, CPA, dives into the nuances between special purpose frameworks focusing on accrual versus cash basis accounting by working through a set of multiple-choice questions. With his trademark conversational style, he breaks down complex problems, guiding you through the reasoning behind categorizing revenue and expenses correctly under each framework. Nick brings clarity to concepts such as when cash sales are recognized and how accrued expenses are handled, offering a clear process to determine a company’s income or loss. Whether it's understanding journal entries that affect accounts receivable or accounts payable, Nick ensures that by the end of the lesson, you'll be more confident in switching between the two accounting bases and correctly calculating pre-tax income.