In 500 words documents minimum, respond to the questions below using APA format. It is important to respond clearly and detailed. APA and in text citations must be properly use throughout the entire...

Accruals Accounting
Accruals accounting ensures that all revenues and expenses belonging to a time period are

being actually recorded as a part of that period. It also ensures that assets and liabilities in the
balance sheet are appropriately reported and disclosed. This implies that amount is recognized
when it is incurred, or when the firm has the right to receive it. This is done regardless of the
actual date of transaction. In accrual accounting, non- cash transactions like depreciation and
provisions are also recognized in the financial statements to provide an accurate and complete
picture.
The difference between accrued accounting and cash based accounting are:
1) In cash based accounting, revenues are recognized when actual payment is received. Also,
expenses are recognized when actual payment is made. In accrual based accounting, the
matching principle and the revenue recognition principle are used for reporting purposes.
2) Cash based accounting does not fulfill the criteria of Generally Accepted Accounting
Principles (GAAP). On the other hand, accrual based accounting is in...