Solution-Which basis of accounting more clearly reflects

Which basis of accounting more clearly reflects the income

Assignment Help Accounting Basics

Reference no: EM131496599

DISCUSSION BOARD: PRINCIPLES OF ACCOUNTING

The Beach House Accounting firm needs to adjust its books at the end of the year. The firm's year end is December 31st. The accountant noted the following transactions:

1. On June 1st, the firm prepaid one year of its rent.

2. On July 1st, the firm received a payment from a client in the amount of $5,000. The client paid $5,000 as a prepayment of the current year accounting fees. At year end, the firm had only completed 75% of the current year's accounting services for the client.

At December 31st, how much rent expense should the firm record under the cash basis and under the accrual basis? Also, at December 31st, how much revenue should the firm record from the client under the cash basis and under the accrual basis? Explain your answers.

Which basis of accounting more clearly reflects the income and expense of the organization? Why? How might the method of reporting skew the true picture of the year's record?

Reference no: EM131496599

Questions Cloud

List the lines of power that kanter identifies : Explain in your own words the main sources of power available to managers. Give examples of both personal and institutional forms of each.

Describe a high-level timeline that includes deadlines : Describe at least three project goals and three project objectives. Describe a high-level timeline that includes key tasks and deadlines.

Plant or waste water treatment plant : Construction Technology 4 (MHK202862) - Evaluate the degree of implementation of sustainable building concepts used in the planning, design and maintenance of this unit.

What motivational skills has managing director demonstrated : Gaynor Coley is managing director at the Eden Project, and her financial background was crucial in raising the money which the project needed.

Which basis of accounting more clearly reflects the income : Which basis of accounting more clearly reflects the income and expense of the organization? Why? How might the method of reporting skew the true picture of the

Describe a public or nonprofit organization : Describe at least two challenges that might arise during the implementation of change. Then, explain how a leader might address each.

Describe what the organisation expected of you : Identify a time when you were working in an organisation, or think of your work as a student.

Importance of cultural diversity in the workplace : Create a powerpoint on "the importance of cultural diversity in the workplace" with great visuals and straight to the point information.

Why cultural diversity is important in the workplace : Create a powerpoint talking about "why cultural diversity is important in the workplace" with great visuals and straight to the point information.

User Account

All Pages

Which basis of accounting more clearly reflects the income

Reference no: EM131496599

Reference no: EM131496599

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT