How often will financial statements be prepared and why

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Discussion Question

"It's Just Lunch" is a nationwide service company that arranges lunch dates for clients. "It's Just Lunch" collects cash up front for a package of dates. Suppose your group is opening an "It's Just Lunch" office in your area. You must make some important decisions-where to locate, how to advertise, and so on-and you must also make some accounting decisions.

Discussion Questions:

• Will the business use the cash basis or the accrual basis of accounting? Give a complete explanation of your reasoning.
• How often will financial statements be prepared? Why? Discuss how the business will use each financial statement.

Reference no: EM131164899

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