Whatever basis of accounting is used on an entity's tax return. Typically, used by smaller entities to reduce the burden of financial reporting. Tax basis of accounting is a non-GAAP OCBOA(other comprehensive basis of accounting).

There is not a way to give you the answer to the comprehensive problem one on accounting cycle. You will have to study to answer this question.

Transaction Allocation and management

Transaction Allocation and management

Yes it is a change in accounting principle. And a rather drastic change. Accrual Basis of accounting is the most fundamental accounting assumption which is regarded throughout the world. Thus if a person either departs or adopts the accrual basis its a change in accounting principle.