Explain accrual basis and cash basis

Assignment Help Financial Accounting
Reference no: EM132739943

Problem 1: Explain "ACCRUAL BASIS" and "CASH BASIS" briefly with your own word by giving specific examples. If a company prepares an I/S according to these two approaches do these statements end up with same amount of profit/loss?

Reference no: EM132739943

Questions Cloud

Determine the weighted average number of shares outstanding : May 1 Acquired 221,000 common shares and retired them. Determine the weighted average number of shares outstanding as at December 31, 2020
Find how much cash can be distributed safely at the point : When APPLE and PIE, partners who share earnings 60:40, were severely injured in an accident, How much cash can be distributed safely at this point?
Determine which strategy is most likely to benefit the firm : Determine which strategy is most likely to benefit the firm. Explain your rationale.
Underwriter spread per share on the stock issue : Suppose that a company's equity is currently selling for $25.75 per share and that there are 3.7 million shares outstanding and 17 thousand bonds outstanding
Explain accrual basis and cash basis : Explain "ACCRUAL BASIS" and "CASH BASIS" briefly with your own word by giving specific examples. If a company prepares an I/S
Summarize the key points of structural family therapy : Summarize the key points of both structural family therapy and strategic family therapy. Compare structural family therapy to strategic family therapy.
Hypothetical situation in which legitimate organization : Describe a hypothetical situation in which a legitimate organization used spam in an effective and non intrusive manner to promote a product or service.
Determine annual depreciation for the first and second years : Depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Provide the deprecation entries for the first two years : An item of plant is acquired at a direct cost of $110 000. Provide the deprecation entries for the first two years using The sum-of-digits method.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare calculations of the earnings per share

Prepare calculations of the earnings per share figure for 2020 and the comparative figure for 2019 to be reported in the published financial statements

  Calculate the overhead rate for each activity center

Calculate the overhead rate for each activity center based on the activity-based costing techniques.- Determine the total cost to produce one unit of each product.

  Describe the role that supply metrics play in managing

Describe the role that supply metrics play in managing and improving the supply chain. How a supply chain can be a competitive advantage for a company

  Calculate the times interest earned ratio

Sales are $1.5 million, cost of goods sold is $600,000, depreciation expense is $150,000, other operating expenses is $300,000, addition to retained earnings is $146,250, dividends per share is $1, tax rate is 30 percent, and number of shares of comm..

  Prepare consolidation journal entries

Prepare consolidation journal entries for the period ended at 30 June 2017. Prepare the consolidation worksheet for the period ended 30 June 2017.

  How much revenue should be recognized by the crane lawns

How much revenue should be recognized by the Crane Lawns Co. in each of the months of March, April, May, June, July, August, and September?

  How many contracts should buy or sell to hedge

How many contracts should you buy or sell to hedge your position? Allow fractions of contracts in your answer. Portfolio Value: $1M

  Costello corporation manufactures a particular product the

costello corporation manufactures a particular product. the standard cost per unit of product is shown below.direct

  Calcuate the payback period and profitibility index

Calcuate the payback period, profitibility index, net present value & internal rate of return for the new strip mine. also please state

  What amount is reportable as interest income

Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $175 in interest on a savings account at the Moss National Bank and $1,475 in interest on California Municipal Bonds. Elmer and Elsie filed a joint inco..

  Describe the impact of treating the lease arrangement

Make the related journal entries for the year ended 2017 in the books. Explain the impact of treating the lease arrangement as an operating lease.

  Compare objective or purpose of financial reporting for firm

How do Compare the objective or purpose of financial reporting for firms with public accountability (listed companies) with the objective of financial reporting

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd