Describe both bases of accounting and explain the difference

Assignment Help Accounting Basics

Reference no: EM13968462

1. Identify the effect, if any, that each of these transactions would have upon cash and net income.
(The first transaction is completed as an example.)

AMOUNTS
Cash	Net Income	ITEM
$ (100.00)	$ -	(a) Purchased $100 of supplies for cash.
		(b) Recorded an adjusting entry to record use of $20 of the above supplies.
		(c) Made sales of $1,300, all on account.
		(d) Received $800 from customers in payment of their accounts.
		(e) Purchased equipment for cash, $2,500.
		(f) Recorded depreciation of building for period used, $600.

Answer the following:

Commercial accounting and generally accepted accounting principles, generally prescribe the accrual basis of accounting over the cash basis.
Describe both bases of accounting and explain the differences.

Attachment:- acc290_wk4_homeworktemplates.xlsx

Reference no: EM13968462

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