ACC/561 WEEK 2 Individual Assignment and Requirements

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ffylsbkk

Business Finance

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Good morning, I hope that you had a great holiday weekend. However, I was hoping that you would be able to assist me with my assignment this week. It is a 700 word memo and the scenario is on the assignment and requirements sheet. Please let me know if you need anything else from me. Thank you. :)

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ACC/561 WEEK 2 INDIVIDUAL ASSIGNMENT Student Supplemental Textbook Materials Instructions: Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2016). Accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. Required Reading: • Accounting: Tools for Business Decision Making, Ch. 3: The Accounting Information System Read pages 90-123. • Accounting: Tools for Business Decision Making, Ch. 4: Accrual Accounting Concepts Read pages 150185. HERE IS THE ASSIGNMENT: Accounting Methods Instructions: Purpose of Assignment This week's activity illustrates the role a company's accounting method plays in financial statement reporting. In this assignment, students evaluate the events occurring in a business setting and determine how to properly analyze those events to identify the impact on both cash and accrual accounting methods. Assignment Steps Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC) Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Scenario: BizCon, a consulting firm, has just completed its first year of operations. The company's sales growth was explosive. To encourage clients to hire its services, BizCon offered 180-day financing meaning its largest customers do not pay for nearly 6 months. Because BizCon is a new company, its equipment suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, BizCon owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year. As the senior accountant, the Chief Financial Officer has asked you to prepare a memo to be sent to management notifying them of the delayed wage payments. Prepare the memo in a maximum 700 words including the following information to better outline the situation: • Explain how cash and accrual accounting differs for each of the events listed in the above scenario and describe the proper accrual accounting. • Assess how at the end of the year, BizCon reported a favorable net income, yet the company's management is concerned because the company is very short of cash. Explain to management how BizCon could have positive net income and yet run out of cash. Format your assignment consistent with APA guidelines. Supporting Material: Accounting Methods Grading Guide
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Explanation & Answer

Hey Sslyfoxx, kindly see attached work. Please tell me if you have any questions. Thank you.

BizCon
6/9/2017

Memorandum

To: BizCon Management
From: Senior Accountant BizCom
CC: Chief Financial Officer BizCom
Subject: Explanation for the positive net income yet shortage in cash.

This is to hereby notify you of a delay in settlement of the employees’ one full month salaries in the
financial year ended. It is possible for the company to record positive net income but fall short on cash.
Though profit and cash flow have a close relationship in accounting, one should not be mistaken for the
other since they are not the same. Profit is a positive balance achieved after expenses are deducted from
the total revenue earned by a given company. BizCon recorded a favorable net income but its closing cash
balance was low and couldn’t cater for further expenses. It was therefore important payment of salaries be
pushed to the first we...


Anonymous
Just the thing I needed, saved me a lot of time.

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