How does the cash basis of accounting differ from the accrual basis of accounting? Which basis gives
Question:
How does the cash basis of accounting differ from the accrual basis of accounting? Which basis gives more useful information for decision making? Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Under the cash basis of accounting events are only recogn...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Question Posted:
Students also viewed these Accounting questions
-
Analyzing the Effects of Transactions in T-Accounts and Computing Cash Basis versus Accrual Basis Net Income Staceys Piano Rebuilding Company has been operating for one year (2010). At the start of...
-
Eddy's Piano Rebuilding Company has been operating for one year (2010). At the start of 2011, its income statement accounts had zero balances and its balance sheet account balances were as follows:...
-
Sbrocchis Piano Rebuilding Company has been operating for one year (2013). At the start of 2014, its statement of earnings accounts had zero balances and the account balances on its statement of...
-
Monochromatic light from a distant source is incident on a slit 0.750mm wide. On a screen 2.00 m away, the distance from the central maximum of the diffraction pattern to the first minimum is...
-
Calculate the value of each of the bonds shown in the following table, all of which pay interestsemiannually. Coupon Years to Required stated Bond Par value inst rate maturity annual return S1.000...
-
Martinez is the Chief Financial Officer for her county. She has been in talks with a major Canadian company who is looking for a place to locate its manufacturing plant and has contacted her about...
-
What is the mirror-image rule?
-
Green Thumb operates a commercial plant nursery where it propagates plants for garden centers throughout the region. Green Thumb has $4,800,000 in assets. Its yearly fixed costs are $600,000, and the...
-
Float is defined as the difference between the balance shown on the books and the balance in the bank account. A lag often occurs between the time receipts and disbursements are recorded on the...
-
a. Sammys Seashore Supplies rents beach equipment such as kayaks, canoes, beach chairs, and umbrellas to tourists. In Chapter 2, you wrote an application that prompts the user for the number of...
-
Which steps in the accounting cycle may be done daily, which steps are done on a periodic basis (monthly or quarterly), and which steps are usually done only at the company's fiscal year end?
-
The name "prepaid expense" implies that this type of account is an expense account and belongs on an income statement. However, these accounts actually appear on the statement of financial position...
-
Write a method in the HashIntSet class called addAll that accepts another hash set as a parameter and adds all of the elements from the other set into the current set. For example, if the set stores...
-
Consider the following monopoly with P = 30.5 -2.75 Q and the marginal cost curve is MC=4.5Q; a.Calculate the consumer surplus under the monopoly. b. Calculate the producer surplus under the...
-
A rod (Body 3) slides through a collar (Body 2) which is held by a rotating fork (Body 1). Body 3 can be treated as a slender rod, while bodies 1 and 2 are massless. A force F acts at end B and...
-
Represent the gcd (252, 198) as a linear combination of 252 and 198. Show all work. (For example, if X is the gcd, then solution is X = 252a + 198 b) Compute 325 mod 35 using the algorithm for (fast)...
-
a) Suppose you need to represent the following information in a database. Now draw an ER Diagram with proper symbols identifying different types of attributes used: MOVIE Movie_name Year Genre...
-
a first faces the demand curve, Q=180-5p, and has the cost equation, c=100+24Q. what is the equation for the firm's marginal revenue?
-
What must be placed in an applications controller class?
-
The Ranch 888 Noodle Company sells two types of dried noodles:ramen, at $6.50 per box, and chow fun, at $7.70 per box. So farthis year, the company has sold a total of 110,096 boxes ofnoodles,...
-
The following condensed information is available for Brick Brewing Company Ltd.: Instructions (a) Using vertical analysis, calculate the percentage of the base amount for the statement of financial...
-
A horizontal and vertical analysis of the income statement for a service company providing consulting services is shown below: Instructions (a) How effectively has the company controlled its...
-
Condensed statement of financial position and income statement data for Pronghorn Ltd. are shown below: Instructions (a) Calculate the receivables turnover ratio, inventory turnover ratio , and...
-
Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly...
-
3. A, B and C are partners sharing profits and losses equally. The balance sheet at 31st December 2020 is as follows. Assets Liabilities Amount Amount (RO) (RO) Creditors 5,000 Cash at Bank 3,000...
-
For each of the following program fragments, give an analysis of the running time. 1) sum = 0; for (int i = n; i > 0; i--) for (int j = 0; j
Study smarter with the SolutionInn App