Special Purpose Frameworks vs GAAP X Company is seeking your advice about how to report the year-end balances in its two bank accounts, as determined by the following bank reconciliations it has prepared for your review:

Account #1
Balance per bank...............................$500
Outstanding vendor check ..............(700)
Balance per books...........................($200)

Account #2
Balance per bank...........................($500)
Undeposited customer check.........700
Balance per books...........................$200

Require:

Briefly describe the advice you should offer X Company under each of the independent assumptions below, and then offer an equally brief response to the question that follows them.
1. X Company’s financial reporting framework is the tax basis-cash method.
2. X Company’s financial reporting framework is U.S. GAAP.

Answer rating: 100% (QA)

Answer 1 X companys financial reporting framework is the tax basis cash method According to Tax basi... View the full answer