Relevance vs reliability, Acct 290 Chapter 4 assignment help

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1. What about relevance vs reliability? Generally, accrual basis financial statements take longer to finalize than cash basis. Would you rather have a report that took less time to create, but you could have it sooner to make key decisions… or would you rather have a report that takes much longer to create… perhaps a month and perhaps not have the information available when key decisions needed to be made.

2. Under GAAP, what are the guidelines for recognizing revenue? When can a company legally record a sale if it is using the accrual method?

3. How would the financial statements differ if the cash method is used vs the accrual basis? Which basis would provide better comparative historical data?

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