Explain the cash basis accounting and accrual basis accounting with relevant examples. b) You have newly...

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Explain the cash basis accounting and accrual basis accounting with relevant examples. b) You have newly joined as an accountant in a bookstore. Your manager has provided you with the following information for the year ended 31st December 2020. Proceeds from sale of equipment Cash paid to employees Depreciation expense Repayment of long-term borrowing Cash paid for rent Issuing shares to a lender for a repayment of a long-term debt Cash paid for general expenses Purchase of land Proceed from issue of shares Cash received for interest RM 100,000 RM 240,000 RM 50,000 RM 450,000 RM 115,000 RM 1,200,000 RM 300,000 RM 250,000 RM 300,000 RM 15,000 Additional information: Beginning balance of cash and cash equivalent as at 1 January 2020, was $1,600,000. You are required to prepare a Statement of Cash Flows using the direct method. c) Describe five (5) benefits of the Statement of Cash Flows in comparison to other financial statements. Explain the cash basis accounting and accrual basis accounting with relevant examples. b) You have newly joined as an accountant in a bookstore. Your manager has provided you with the following information for the year ended 31st December 2020. Proceeds from sale of equipment Cash paid to employees Depreciation expense Repayment of long-term borrowing Cash paid for rent Issuing shares to a lender for a repayment of a long-term debt Cash paid for general expenses Purchase of land Proceed from issue of shares Cash received for interest RM 100,000 RM 240,000 RM 50,000 RM 450,000 RM 115,000 RM 1,200,000 RM 300,000 RM 250,000 RM 300,000 RM 15,000 Additional information: Beginning balance of cash and cash equivalent as at 1 January 2020, was $1,600,000. You are required to prepare a Statement of Cash Flows using the direct method. c) Describe five (5) benefits of the Statement of Cash Flows in comparison to other financial statements.

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a Cash basis accounting is a method of accounting where revenues and expenses are recorded when cash is actually received or paid out This means that revenues are recognized when cash is received and ... View the full answer