Complete 2 short discussion questions for accounting and math course

User Generated

ubzrjbexpbafhgyvat

Business Finance

Description

ANSWER BOTH QUESTIONS WITH AT LEAST 200 WORDS

A:

  • There are two types of basic accounting methods; Cash Base Accounting vs. Accrual Base Accounting. Discuss the differences between each of these methods. Please provide the different accounting treatments (i.e. journal entries) of the following transaction for both Cash Base Accounting vs. Accrual Base Accounting:


Example: You are an accountant for a landscaping company (Grantham Landscaping LLC) and have mowed a large park for the local county government. You charge the client $2,000 for the job. The county agrees to pay you 6 months from the date of the service.


Question B

We are all used to the conveniences that come with modern banking. We not only can pay our bills online but can have some paid automatically every month from our account. We can get our checking account balances on a daily basis. With all the automated banking processes that are available today, why do you think that bank reconciliation is necessary?

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Here are the responses :). Let me know if you have any questions :)

1

QUESTION A:
There are two types of basic accounting methods; Cash Base Accounting vs. Accrual Base
Accounting. Discuss the differences between each of these methods. Please provide the
different accounting treatments (i.e. journal entries) of the following transaction for both
Cash Base Accounting vs. Accrual Base Accounting:
Example: You are an accountant for a landscaping company (Grantham Landscaping LLC)
and have mowed a large park for the local county government. You charge the client $2,000
for the job. The county agrees to pay you 6 months from the date of the service.
Response:
Cash base Accounting and Accrual basis accounting, both are accounting system for the
recording of revenue and expenses but they differ on the following grounds:1. Timing: The timing of recording is different in the case of both the methods. Under C...


Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags