Using the cash-basis method of accounting

Assignment Help Financial Accounting

Reference no: EM13737516

1.Identify the advantages and disadvantages of using the cash-basis method of accounting.
Under the cash-basis method of accounting, only cash transactions are recorded in the books of account. Using this type of accounting, only cash receipts and cash payments are treated as revenue and expenses respectively.

Consider the features of cash-basis accounting and respond to the following:
Discuss some of the advantages or disadvantages of using the cash-basis method of accounting. Provide some examples.

2. Choose an appropriate method of depreciation for each type of asset
There are various methods of depreciation of assets. The methods of depreciation include the straight-line method, units-of-production method, and double-declining balance method.

Consider the methods of depreciation and respond to the following:
What are the various points or factors you would consider while choosing a method of depreciation for plant and equipment of an electricity company? Explain with examples.

Reference no: EM13737516

Questions Cloud

What is the brand-building process the company must follow : Develop a 10- to 15-slide presentation with supporting speaker notes to persuade the company that it needs to address the branding problem. What is the brand-building process the company must follow

Economical house painting company painted for houses : Economical house painting company painted for houses in June at $500 each at the end of June 3 homeowners had paid economical cash for the jobs under the accrual basis what amounts will be reported on the income statement and the statement of cash fl..

Describe two economic examples of issues : Describe two economic examples of issues that affect our decision-making processes and that may change our quality of life.

What was the swot of the company after the attack : Case Study Topic- Handling a Cyber Attack, What was the SWOT of the company after the attack

Using the cash-basis method of accounting : 1.Identify the advantages and disadvantages of using the cash-basis method of accounting. Under the cash-basis method of accounting, only cash transactions are recorded in the books of account. Using this type of accounting, only cash receipts and ca..

Summarize the successes and failures of the originally plan : Using the business combination that you have previously selected, evaluate the performance of the acquired companies and determine if the parent is satisfied with the outcomes of the combination. Summarize the successes and failures of the originally..

Managing teams and human resource systems : Assess the impact of "group think" and "slackers" to the overall performance of the team and make two recommendations for how that impact could be mitigated. Provide specific examples to support your response.

Compute the degree of operating : Firm R has sales of $100,000 units at $2.00 per unit, variable operating costs of $1.70 per unit, and fixed operating costs of $6,000. Interest is $10,000 per year. Firm W has sales of $100,000 units at $2.50 per unit, variable operating costs of $1...

Why did the national security agency monitor phone calls : Why did the NATIONAL seCURITY aGENCY MONITOR PHONE CALLS AND E-MAILS WITHOUT COURT-approved warrants? To find communications between potential terrorists.

User Account

All Pages