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Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting.

Business Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company’s sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing – meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being […]

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