The memo should include: Explain to Tim why you are recording adjusting entries in accrual accounting and why the entries were not made when Tim used cash accounting. Explain why this is important to users of financial information. Refer to the Accounting Conceptual Framework when explaining the concepts to Tim. Following proper procedures is important in accounting professional ethics. Explain how specific accounting principles and assumptions guide accountants in recording useful and appropriate information. Use the adjusting entries above as examples to support your explanation. Each adjusting entry affects at least one Income Statement account and one Balance Sheet account. Explain how not recording the above adjusting entries would affect the financial statements. What is overstated or understated on the statements? What responsibility do accountants have in reporting accurate financial information? Most people think accounting provides only quantitative information. Relate how the qualitative characteristics from the conceptual framework guide accountants in providing useful and trusted information for business decisions