Briefly explain to mark the dual entry system of accounting

Reference no: EM133654119

Question: Your friend, Mark, owns the dog sitting company, Mark's Dogs, out of his home. He watches a maximum of 5 dogs at a time at his home, with the dog owners dropping the dogs at his home. Terms of service require payment in cash or check when the owner retrieves the dog.

Mark's business has grown, and Mark will be moving into an empty storefront that is large enough for him to watch 20 dogs at a time. Regarding this expansion, he will be moving from a cash-only business to an accrual-based business.

Choose ONE of the following to discuss:

Briefly explain to Mark the dual entry system of accounting.
Inform Mark about the new accounts created when a business moves from a cash-only to an accrual business.
Would the nature of Mark's business require any period-end adjustments? If so, which ones?
If Mark accepts credit cards, will this be recorded as cash? Explain.
Work to demonstrate your understanding of the material from this module and, where necessary, include your sources.

Reference no: EM133654119

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