Accounting question 3
Im studying for my Accounting class and need an explanation.
Imagine that you opened a restaurant in your hometown and you decided to take the knowledge and skills you learned in this class and be your own accountant. Discuss whether you would prefer to keep your accounting records on the cash basis or the accrual basis. As part of the discussion, explain how and why you selected one basis over the other. Answer in couple sentences.
2. then agree or disagree to post below in 2-3 sentences
If I were to open a business in my hometown I would keep my accounting records on the accrual basis for several reasons. The first reason would be that the GAAP doesnt allow the cash basis of accounting and I am a rule follower. In addition, the accrual basis provides a better picture of revenue and expenses.
please number each answer