You are part of a group of individuals (incorporators) who want to form a new corporation. During discussions on forming the business, Mark Adams makes this statement:

Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the cash basis of accounting?

Prepare a response for Mark and the other incorporators.

Answer rating: 100% (QA)

I agree that cash basis of accounting is an acceptable form of accounting for a new business With ca... View the full answer