Your examination of the records of Southlake Company shows the company collected $85,500 cash from customers and
Question:
Your examination of the records of Southlake Company shows the company collected $85,500 cash from customers and paid $48,400 cash for operating costs during 2024. If Southlake followed the accrual basis of accounting, it would report the following year-end balances:
Instructions
a. Determine Southlake’s profit on a cash basis for 2024.
b. Determine Southlake’s profit on an accrual basis for 2024.
Taking It Further
Which method do you recommend that Southlake use? Why?
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Step by Step Answer:
Students may find this to be a fairly challenging problem so here are a few points that should help Under the CASH BASIS revenues are recorded when cash is collected even if the services were performe...View the full answer
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Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
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Related Book For 
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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