1.- ArtDeco is a Mexican company dedicated to the sale and manufacture of wooden furniture. Despite its success, there are some problems in its manufacturing process, since the wood used to produce the furniture is imported and at a higher price than the country. They do not want the cost of their furniture to exceed that of those made with national woods, because they would be almost out of the market and they would lose their customers. Therefore, the administrators of the company require that you provide them with guidance on what accounting they should use in order to solve their problem. Justify your recommendation in as much detail as possible.

2. Eve Jeanne is a French citizen who has just arrived in Mexico from Marseille. Eve, along with a group of European friends, has started a business. They decided to open a gym, which they will equip with the most sophisticated fitness equipment, a swimming pool and a spa. They have decided to establish it as a limited company, since they all contributed a certain amount of money to achieve their objective. By decision of the partners, Eve has been appointed as the gym manager. She believes that just by keeping a record of the people who sign up and the expenses that are generated, she is fulfilling her role as administrator because she is unaware of the benefits of generating financial information. Similarly, she believes that with this registration she is complying with the tax obligations that are generated by having a business in Mexico. You are a customer of the gym and you know its owners. One day after the daily training, she stays talking with Eve, who tells her about the way she is managing the gym and asks her opinion about it, since she knows that she has knowledge about accounting. She is asked: Analyze whether the registration form carried out by Eve Jeanne is the correct one for the administration of a company. a) What type (s) of accounting (s) would you recommend the business run? Why? b) Mention some differences between the types of accounting that you recommend to Eve, since She has not been very clear about the objective that each one of these has.

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1 The most appropriate accounting for the company ArtDeco would be the accrual basis accounting sinc... View the full answer