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Week 2 – Accounting Methods. Answered. Graded Aa) Explain how cash and accrual accounting would differ for each of the events listed above and describe the proper accrual accounting. (b) Assume that at the end of the year, BizCon reported a favorable net income, yet the company’s management is concerned because the company is very short of cash. Explain how BizCon could have positive net income and yet run out of cash.
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